Forex trading license in the UAE

Forex trading in the UAE

If you are active in the foreign exchange market, the United Arab Emirates offers an excellent platform for your activities. Here’s why:

• No personal income tax on independent trading;
• Low taxes for businesses — 9% on profits exceeding 375,000 AED;
• A legal and strictly regulated sector;
• Stable currency pegged to the US dollar;
• Ability to open bank accounts with unrestricted international operations.

When do you need a license?

A forex trading license in the UAE is only required if you plan to operate a business providing brokerage or investment services, or managing client funds. If you trade solely for personal income, no license is needed. However, there are important nuances to consider.

How can you trade forex in the UAE?

• Trade on your own behalf as a private investor;
• Work for a brokerage firm;
• Establish your own brokerage company.

Trading forex as a private investor in the UAE

This is the simplest and quickest path. Key points:

• No license required;
• Proof of funds source may be requested;
• Trading and profit withdrawal are done via your personal bank account or payment platforms, subject to AML and KYC compliance;
• To obtain a residence visa, you may need to register under a different license type (e.g., IT or consulting), as freelance visas are not available for trading activities.

Setting up a brokerage company in the UAE

If you want to provide forex trading or asset management services for clients, you will need a professional license. This can be obtained either on the mainland or in a free zone.

All jurisdictions can be roughly divided into two categories:

1. Financial Free Zones (self-regulated):

• DIFC (Dubai) — regulated by DFSA (Dubai Financial Services Authority)
• ADGM (Abu Dhabi) — regulated by FSRA (Financial Services Regulatory Authority)

These zones have a high level of regulation and international recognition.

2. Other zones and mainland (regulated by SCA):

• Include free zones such as DMCC, DWTC, RAK DAO, etc.
• Regulated by the Securities and Commodities Authority (SCA)
• Licenses here are issued only after SCA approval.

Step-by-step process to obtain a forex brokerage license in the UAE

Step 1: Prepare your business plan and concept

• Detailed business model, target audience, and operational geography
• Financial forecasts
• IT infrastructure and risk management system description
• In DIFC and ADGM, the business plan must meet international standards

Step 2: Choose your jurisdiction

• DIFC / DFSA — prestige and international trust
• ADGM / FSRA — flexibility, fintech-friendly environment
• DMCC / DWTC / others + SCA — simpler and faster licensing, but requires regulator approval

Step 3: Appoint key personnel

• CEO with relevant experience (5+ years in financial sector)
• CFO
• Compliance officer
• All key staff require approval in DIFC and ADGM

Step 4: Register a legal entity

• DIFC ⟶ license from DFSA
• ADGM ⟶ license from FSRA
• DMCC, DWTC, others ⟶ license from free zone + SCA approval

Step 5: Prepare and submit the license application

Documents needed:

• Incorporation documents
• Shareholders’ passports
• Address proofs
• Directors’ CVs
• AML and KYC policies
• Risk management plan

Submit through DFSA or FSRA portals in DIFC / ADGM, or to free zone and then SCA in others.

Step 6: Interview and due diligence

Step 7: Capital contribution

Amount depends on jurisdiction and license type.

Step 8: License issuance

Step 9: Residency visas processing

• Obtain Establishment Card
• Apply for residence visas for shareholders and staff
• Medical tests and Emirates ID issuance

(Typically takes 2–3 weeks)

Step 10: Finalize corporate bank account

A corporate bank account can be opened during application, but activated after capital deposit and license issuance.

Additional notes:

• Reporting — regular submission of financial and compliance reports, audits required
• Office space — DIFC and ADGM require a physical office; DMCC and others may allow flex-desks