Securities Brokerage Licence in the UAE: SCA, DFSA & FSRA

Quick Summary: securities brokerage licence in the UAE

• What it is: a licence to deal in or arrange deals in conventional securities – shares, bonds, derivatives and funds – for clients. This is regulated financial broking, not property or crypto broking.
• Three homes, three regulators: onshore via the SCA (to trade on the Dubai Financial Market and Abu Dhabi Securities Exchange), or inside a financial free zone via the DFSA in the DIFC or the FSRA in ADGM.
• Capital scales with what you do: a full SCA dealing-and-brokerage licence carries substantial capital (broadly in the order of AED 30 million), while an arranging or advisory permission is a fraction of that. The DIFC and ADGM set capital by category.
• Not the same as: a real-estate broker (registered with RERA) or a crypto broker (VARA/FSRA under the virtual-asset regime) – different regulators entirely.
• Timeline: broadly two to four months, with regulator pre-approval before the trade licence is issued.

“Brokerage licence” means very different things in Dubai. This guide is about a securities and investment brokerage – a regulated firm that buys, sells or arranges deals in financial instruments for clients. It is one of the more capital-intensive regulated activities, and where you set it up – onshore under the SCA, or in the DIFC or ADGM – changes the market you can reach, the capital you carry and the rulebook you follow. Here is how each route works, the activities, the capital, the process and the pitfalls.

“The first question is not capital, it is scope. Are you dealing as principal, dealing as agent, or only arranging? Each is a different permission and a very different capital number. Most brokers over-scope, then pay for capital they never needed.”

— Reviewed by CA Akbar Ali, Financial & Regulatory Specialist

What a securities brokerage licence covers

A securities broker stands between clients and the market. The core activities are dealing (executing buy and sell orders in securities, as agent or as principal) and arranging (bringing parties together without holding client positions). Around them sit related permissions such as advising and custody. The instruments are conventional securities – equities, bonds, units in funds and derivatives – not property and not virtual assets.

The difference between dealing and arranging is the difference between a full brokerage and a lighter introducing or advisory firm, and it drives the capital you must hold.

Not property or crypto broking

Because “broker” is used loosely in Dubai, it is worth being precise. A real-estate broker registers with the Dubai Land Department’s RERA and holds a broker card – a different regime entirely. A crypto or virtual-asset broker is licensed under the virtual-asset framework by VARA (Dubai) or the FSRA (ADGM) – see our VASP licence guide. This page is about securities and investments, licensed by the SCA, the DFSA or the FSRA.

The three homes for a securities broker

Route	Regulator	Reaches
Onshore	Securities and Commodities Authority (SCA)	The UAE markets – the Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX)
DIFC	Dubai Financial Services Authority (DFSA)	International securities from a common-law financial centre
ADGM	Financial Services Regulatory Authority (FSRA)	International securities from Abu Dhabi’s financial centre

If you want to trade UAE-listed shares on the DFM or ADX, you need the SCA route. If your clients and instruments are international, the DIFC or ADGM route is usually the better fit. The three regulators also cooperate on cross-border fund activity.

Dealing versus arranging

• Dealing in investments – executing trades for clients, as agent or as principal. The fuller the dealing permission, the higher the capital.
• Arranging deals in investments – introducing and arranging without executing or holding positions. In the DIFC this sits in the lighter Category 4, and it carries far less capital.
• Advising – recommending securities, often alongside arranging.

Scoping to the narrowest activity that fits your model is the single biggest cost decision. The full DFSA ladder is set out in our DFSA licence categories guide.

Capital requirements

Capital is where the routes diverge most:

Activity / route	Indicative capital
SCA full dealing + brokerage	Substantial – broadly of the order of AED 30 million
SCA advisory / arranging only	A fraction of the above
DIFC / ADGM dealing	Set by category; higher for principal dealing
DIFC arranging (Category 4)	Light – the lowest of the securities permissions

Treat these as indicative and confirm the exact figure for your permission with the regulator, as the amount depends on your precise activities and, in the free zones, on an expenditure-based test.

How to license a securities brokerage, step by step

1. Scope the activity and route. Decide dealing vs arranging, and the SCA, DFSA or FSRA route.
2. Pre-application engagement. Prepare a regulatory business plan, financial model and compliance framework, and engage the regulator early.
3. In-principle / initial approval. The regulator approves in principle, subject to conditions; onshore, SCA pre-approval precedes the trade licence.
4. Capital, people and systems. Inject capital, appoint fit-and-proper senior managers, a compliance officer and MLRO, and stand up trading and AML systems.
5. Authorisation. Meet the conditions and receive the brokerage licence, then connect to the market or begin dealing.

Documents the regulator expects

• A regulatory business plan and financial model, with the capital calculation.
• Governance and org structure, with fit-and-proper evidence on senior managers, compliance officer and MLRO.
• The compliance and AML/CFT manual, conduct-of-business and best-execution policies.
• Systems and controls documentation – trading, client-money handling and cyber.
• Evidence of capital and of a real UAE office and staffing.

What it costs

Beyond capital, budget for regulator application and annual fees, senior compliance hires, technology, and office and substance. An arranging or advisory firm is far cheaper to stand up than a full dealing brokerage – another reason to scope carefully. Sketch the corporate side with our free UAE setup cost calculator.

Corporate Tax

UAE Corporate Tax is 9%, with 0% on the first AED 375,000. A brokerage set up in a free zone such as the DIFC or ADGM can earn 0% Corporate Tax on qualifying income as a Qualifying Free Zone Person, subject to the substance and activity tests. There is no personal income tax. See our UAE Corporate Tax guide.

Ongoing obligations

• Capital maintained and reported to the regulator.
• Conduct of business – best execution, suitability and clear client disclosure.
• Client money and asset protection, kept segregated and reconciled.
• AML/CFT – KYC, monitoring, sanctions screening and an approved MLRO.
• Audited accounts and periodic returns, plus notification of material change.

Five mistakes when licensing a brokerage

• Confusing the regime. A securities broker is not a real-estate (RERA) or crypto (VARA) broker – the regulator and rules differ entirely.
• Over-scoping the permission. Applying for full dealing when you only arrange multiplies the capital you must hold.
• Under-capitalising. Falling below the required capital, even briefly, is a serious breach.
• Weak best-execution and conduct rules. Client-facing conduct is examined closely.
• Thin substance. A brass-plate will not pass the SCA, DFSA or FSRA.

Frequently asked questions

Who regulates a securities brokerage in the UAE?

Three regulators, depending on where you set up: the SCA onshore (to trade on the DFM and ADX), the DFSA in the DIFC, and the FSRA in ADGM. Each licenses dealing and arranging in securities.

Is a securities brokerage the same as a real-estate or crypto brokerage?

No. A real-estate broker registers with RERA; a crypto or virtual-asset broker is licensed under the VARA/FSRA virtual-asset regime. A securities brokerage deals in conventional financial instruments and is licensed by the SCA, DFSA or FSRA.

How much capital does a brokerage need?

It depends on the activity. A full SCA dealing-and-brokerage licence carries substantial capital (broadly in the order of AED 30 million), while an arranging or advisory permission is a fraction of that. The DIFC and ADGM set capital by category. Confirm the exact figure with the regulator.

What is the difference between dealing and arranging?

Dealing means executing trades for clients (as agent or principal); arranging means introducing and arranging without executing or holding positions. Arranging carries far less capital - in the DIFC it sits in the lighter Category 4.

SCA, DIFC or ADGM - which should I choose?

To trade UAE-listed shares on the DFM or ADX you need the SCA route. For international securities and clients, the DIFC (DFSA) or ADGM (FSRA) route is usually the better fit.

How long does licensing take?

Broadly two to four months, with regulator pre-approval before the trade licence is issued, depending on the route and the completeness of your application.

Does a UAE brokerage pay tax?

UAE Corporate Tax is 9% (0% below AED 375,000); a brokerage in a free zone such as the DIFC or ADGM can earn 0% on qualifying income. There is no personal income tax. Confirm with the Federal Tax Authority.

Can I add investment management to a brokerage licence?

Managing client portfolios or funds is a separate regulated activity - see our fund manager licence guide. You can hold multiple permissions, but each must meet its own capital and conduct standards.

Sources and official references

Related guides

• DFSA licence categories explained
• Fund manager licence UAE
• VASP licence (crypto broking)
• UAE Corporate Tax guide
• Free UAE setup cost calculator
• Talk to an adviser

This guide is general information, not legal, tax or financial advice. Brokerage categories, capital and fees are set by the SCA, DFSA and FSRA and change over time; figures are indicative and current at the time of writing. Confirm current requirements with the relevant regulator, or a licensed adviser, before you act.