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Regulatory sandbox aims to reduce time to market and delivery prices by encouraging healthy market competition

Regulatory sandbox will enable CITC to support a culture of innovation and entrepreneurship in the delivery sector

RIYADH – 04 oct 2020: The Communications and Information Technology Commission (CITC) announced the launch of a regulatory sandbox for delivery applications. The initiative comes as part of the authority's mandate to regulate and supervise the postal sector, which includes the licensing and regulation of delivery apps operating in Saudi Arabia.

 CITC's regulatory sandbox has been specifically crafted to support, enable, and sustain the growth of the Kingdom's delivery app ecosystem, for the benefit of all sector stakeholders, including consumers, producers, and delivery drivers. Specifically, it aims to reduce time to market for apps and potentially lower cost for delivery services. It will also give app designers the ability to test innovative products and services in a controlled environment. By doing so, and providing better access to financing, CITC will help to develop an ecosystem conducive to innovation.

Dr Mohammed Al Tamimi, governor of CITC, commented, "The COVID-19 pandemic has caused tremendous growth in e-commerce and delivery services to respond to the dramatic surge in demand. At CITC, we take the optimization of the delivery sector as our responsibility and, for that reason, have developed a regulatory sandbox for delivery applications. This will provide a safe space for companies to test their apps as they bring them to market. They will be assessed on their quality or service, business models, legality and customer service. Additionally, we will also make them aware of potential access to financing, providing their strategy and execution is up to the required standard."

 Saudi Arabia has recorded a 500% growth in orders between April 22nd and May 27th. In the same period, the growth in online payments reached 400%. The regulatory sandbox enables CITC to smartly control and regulate Saudi Arabia's delivery applications ecosystem while nurturing and support a culture of innovation and entrepreneurship, in line with Vision 2030.