Business Setup & Formation
Forex Broker Solutions
The United Arab Emirates (UAE), particularly Dubai, is among the fastest-growing financial hubs globally, thanks to its high-income population and a large number of individuals seeking investment opportunities. This strategic position in the Middle East attracts many traders to the Forex market. While there are already several offshore Forex brokers offering unregulated services, the UAE also has licensed and regulated Forex providers, ensuring a secure environment for investors.
The Central Bank of the UAE oversees the financial sector and banking system, including the regulation of Forex brokers and trading activities. It is also authorized to issue licenses to companies managing currency trading, commodities, or other related financial services.
Key Requirements for UAE Forex Brokers
Obtaining a license from the Central Bank of the UAE is a detailed process, designed to ensure that licensed brokers provide high-quality services and operate fairly and transparently. The Central Bank works closely with the Securities and Commodities Authority (SCA) to verify that all conditions are met before issuing a license. The most important requirements include:
The Forex broker must be a UAE national
At least 60% of the company’s total paid-up capital should be held by UAE nationals
The minimum capital requirement ranges from AED 1 million to AED 3 million
Depending on the scope of their activities, these requirements ensure that regulated UAE Forex brokers undergo thorough scrutiny, guaranteeing they can deliver reliable services to their clients. Offshore brokers are allowed to operate, but they must appoint a local representative and demonstrate adequate liquidity. A Forex broker without sufficient capital poses a significant risk to clients.
Forex Broker Benefits in UAE
Attractive government incentives for brokers
High-income population providing a strong client base
0% corporate tax
World-class infrastructure
Business – Friendly Environment
Well-established legal and regulatory framework
Forex Trading Companies in the UAE
There are several options for setting up a Forex brokerage in the UAE, but it is a regulated activity and cannot be done in just any free zone. The main regulated options include establishing a Mainland company, or licensing through ADGM or DIFC.
Additionally, it is possible to set up a foreign branch in a standard free zone without regulatory oversight, or to trade with your own capital under specific conditions.
Mainland Company
Businesses in the UAE are often structured as Mainland Companies, which require 51% local ownership. This structure offers the greatest access to local markets and customers.
Mainland companies offering Forex trading services are regulated by the Central Bank of the UAE and must obtain a license from the Securities and Commodities Authority (SCA).
Free Zone Options
The UAE provides investors with opportunities to set up financial businesses while retaining 100% ownership. ADGM in Abu Dhabi and DIFC in Dubai are specialized financial free zones that accommodate companies like Forex brokers. However, Free Zone companies cannot directly trade with the local UAE market.
Each free zone has its own registration rules, procedures, and regulations. Some even have dedicated regulatory authorities and courts for businesses conducting regulated financial activities.
1. Abu Dhabi Global Market (ADGM)
ADGM is a global financial hub located in Abu Dhabi, UAE. Established by a federal decree, it operates through three independent bodies: the Registration Authority (RA), the Financial Services Regulatory Authority (FSRA), and ADGM Courts. Together, they provide investors with a world-class business environment and infrastructure.
The Financial Services Regulatory Authority (FSRA) serves as the regulatory authority for all financial entities operating within the ADGM free zone.
2. Dubai International Financial Center (DIFC)
DIFC is a dedicated financial free zone in Dubai with its own independent legal and regulatory framework. Recognized as one of the world’s leading financial hubs, DIFC provides a secure and efficient platform for financial institutions and businesses to grow and expand regionally and globally.
Forex brokers operating in DIFC are regulated by the Dubai Financial Services Authority (DFSA), the independent authority overseeing all financial services conducted within or from the DIFC.
In addition to offering access to the Middle East market and 0% corporate tax benefits, both Mainland and Free Zone companies can help shareholders and employees obtain UAE residency permits.
If you do not plan to conduct Forex trading in the UAE, or already operate a regulated foreign company, setting up a representative office in a standard free zone may be a more suitable option.
Representative Office of a Foreign Forex Company
Foreign investors who already have licensed companies in other countries may wish to expand into the UAE and the broader Middle East. Instead of establishing a fully licensed UAE company, they can set up a representative office in a free zone, such as DMCC.
This option provides a Dubai presence without requiring a dedicated Forex license. The representative office can be used for marketing and promotion of Forex products and services, helping connect with customers across the region.
The investor could use its representative office in Dubai for marketing purposes to promote its forex products and services and get connected with more customers from around the region.
Additionally, the office can offer certain Forex-related support services, such as industry training. For investors trading with their own funds, a DMCC Free Zone company with specific membership is also available.
Dubai Multi Commodities Center (DMCC)
DMCC, located in the heart of Dubai, is recognized as one of the world’s leading free zones and serves as a major commodities trading hub in the MENA region.
For Forex trading, DMCC allows two types of activities:
a. Proprietary Trading with Approved Counterparties – Firms trading their own funds in FX, OTC, or Exchange Traded Derivatives with counterparties approved by DMCC. These firms must obtain membership with the Dubai Professional Trading Group instead of a specific license.
b. Trading on Regulated Exchanges – Firms trading their own funds in FX, OTC, or Exchange Traded Derivatives on regulated exchanges. These firms are required to hold membership with the Dubai Gold & Commodities Exchange (DGCX).
In summary, the UAE offers foreign investors multiple options to select the most suitable business structure for their needs. Its 0% corporate tax, extensive network of double taxation treaties, world-class infrastructure, and business-friendly environment have attracted numerous leading Forex companies to establish offices or headquarters in the country.
Our Dubai team consists of experienced professionals well-versed in UAE legal and regulatory frameworks. We assist investors in setting up their companies, obtaining the necessary licenses, and managing the entire process efficiently, saving time and simplifying complex procedures.