TradeTech Regulatory Sandbox BOX 16 The TradeTech Regulatory Sandbox aims to bridge the gap between cutting-edge technological solutions and existing local regulatory frameworks by creating a controlled environment in which start-ups, financial institutions and regulators can test new technologies in real-world conditions. Structured as a collaborative initiative, the sandbox requires active engagement from both public and private sectors; government agencies, including the Central Bank of the United Arab Emirates, Abu Dhabi Global Markets (ADGM), Dubai Financial Services Authority (DFSA) and RegLab, provide regulatory oversight, while private sector participants bring technical expertise and innovation. The sandbox currently focuses on trade finance, emphasizing AI and blockchain to make trade finance processes more efficient, sustainable and equitable. Although the initial focus is sector- specific, the sandbox model is adaptable and could expand to other areas in the future. While this cohort is headquartered in the United Arab Emirates and managed by the World Economic Forum, the TradeTech Regulatory Sandbox has a global reach, drawing businesses from around the world. The insights and outcomes are not confined to United Arab Emirates markets but aim to inform international regulatory best practices, positioning the sandbox as a pioneering initiative with the potential for broad cross-border impact. The Trade Worldwide Information Network (TWIN) exemplifies a targeted cross-border approach; it focuses specifically on the secure storing and sharing of trade-related information through distributed ledger technology. This can be augmented by AI’s ability to digitize documentation, further facilitating information sharing. By bringing together governments, businesses, and non- governmental organizations (NGOs), the project demonstrates how focused collaboration can dramatically reduce transaction costs and processing times, particularly benefiting SMEs. The complexity of global trade demands comprehensive approaches that span both jurisdictions and issues. The TradeTech Global Initiative, a partnership between the World Economic Forum and the United Arab Emirates, represents this new generation of holistic PPPs. The initiative operates on several levels and scales. It facilitates local projects, such as the regulatory sandboxes within the UAE, that can be scaled to support other jurisdictions. The project also maintains a global perspective through regular convenings with international leaders and experts. By combining local implementation with global knowledge sharing, the TradeTech Global Initiative creates a powerful mechanism to harness successful AI solutions to benefit the whole trade ecosystem. The project creates a forum to test innovations in specific contexts while maintaining a platform for global dissemination. As such, it can accelerate the adoption of effective AI solutions and provide a blueprint for new models of public-private collaboration that transform trade. The TradeTech Global Initiative can accelerate the adoption of effective AI solutions and provide a blueprint for new models of public-private collaboration that transform trade. Artificial Intelligence for Efficiency, Sustainability and Inclusivity in TradeTech 30

Artificial Intelligence for Efficiency Sustainability and Inclusivity in TradeTech 2025