The UAE was the first country that established supporting infrastructure for the financial sector in the region. It provides both local and international investors a comprehensive regulation system and flexible operation choices with various types of legal entities. The main sources of revenue are tourism, real estate, aviation, and most significantly financial services.
With a world-class infrastructure, business-friendly environment, mature legal and regulatory system, the UAE has attracted a number of foreign investors to come here and establish their forex companies or branches.
There are 3 regulated routes available to you:
Any mainland company that intends to provide forex trading services are regulated by the Central Bank of the UAE and licensed by the Securities and Commodities Authority (SCA). However, it is undeniable that a Mainland Company provides you with the maximum freedom to access local markets and customers.
Free Zone options
The UAE government also offers several options for potential investors to set up a financial business in the region but retain 100% ownership of their businesses. The only limitation for Free Zone companies is that they are not allowed to directly trade with the local market. As below.
It is established by the UAE Federal Decree with three independent authorities – the Registration Authority (RA), the Financial Services Regulatory Authority (FSRA), and ADGM Courts
The Financial Services Regulatory Authority (FSRA) is the regulatory body for financial entities operating within the ADGM financial free zone.
DIFC is a special designated area in Dubai that operates under an independent regulatory and legal system as a financial free zone.
Besides having the benefits of gaining access to the Middle East market and 0% taxation advantages, both Mainland and Free Zone Companies may assist the shareholders and employees to apply for the UAE residency permits.
To setup a forex trading business in Dubai, you need a verified license from DMCC. It is the global commodities trading center in the MENA region.
Regarding forex trading, there are 2 types of activities allowed in the DMCC.
Cost of Setting Up Trading Business
Cost of Trade business in Dubai is 32000 AED and also need to choose your office presence like it will be flexi office or office space and then get approvals from authorities.
Minimum Share Capital value 50,000 AED and a Bank guarantee letter needs to be shown by DMCC Authorities.
In case you require any further information or clarification, feel free to contact us at below given details: