Local Shares & Bonds Brokers Business License in Dubai: Cost and Requirements
Dubai has firmly established itself as one of the world's foremost financial centres, attracting investors, institutions, and intermediaries from across the globe. For professionals seeking to operate as local shares and bonds brokers, the Dubai South Business Hub Free Zone offers a structured, cost-effective, and internationally recognised pathway to market entry. Whether you are an experienced securities professional or a firm looking to expand into the Gulf region, understanding the licensing requirements, costs, and compliance obligations is the essential first step.
What Is the Local Shares & Bonds Brokers License?
The Local Shares & Bonds Brokers license falls under Activity Code 6612.9 and is classified as a Business License within the Financial category. This activity covers the brokerage of shares, bonds, and other securities on behalf of clients operating within the local UAE market. Licensed brokers act as intermediaries between buyers and sellers of financial instruments, facilitating transactions on recognised exchanges and over-the-counter markets.
Activities typically covered under this license include:
Executing buy and sell orders for equities and fixed-income securities on behalf of clients
Providing intermediary services for government and corporate bonds
Advising clients on securities transactions within the scope of brokerage
Maintaining client accounts and transaction records in accordance with regulatory requirements
Who Is This License Suited To?
This license is particularly well-suited to a range of professionals and entities, including:
Securities brokerage firms seeking a UAE base of operations
Independent financial intermediaries with expertise in equity and debt markets
Regional investment houses looking to access UAE-listed instruments
International brokers establishing a local presence to serve UAE-based clients
Family offices and wealth management firms requiring brokerage capabilities
UAE and Dubai Market Context
The UAE's capital markets have experienced significant growth in recent years. The Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX) together represent a combined market capitalisation exceeding USD 900 billion, with the UAE consistently ranking among the top emerging markets globally. Dubai's strategic position between European and Asian trading hours, combined with a zero personal income tax environment and a robust regulatory framework, makes it an attractive hub for securities intermediaries.
The UAE Securities and Commodities Authority (SCA) oversees the regulation of brokers operating in the local securities market, ensuring investor protection and market integrity. Dubai South Free Zone adds an additional layer of operational flexibility, offering streamlined company formation and access to a growing financial services ecosystem.
Key Stats at a Glance
Activity Code: 6612.9
License Type: Business License
Category: Financial
Free Zone: Dubai South Business Hub
UAE Capital Market Cap: Over USD 900 billion (DFM + ADX combined)
Foreign Ownership: Up to 100% permitted
Corporate Tax Rate: 9% (applicable on taxable income above AED 375,000)
Estimated License Setup Cost: From AED 15,000 (subject to activity and package selected)
Setup Costs and Steps
Setting up a Local Shares & Bonds Brokers business in Dubai South involves several stages. Costs vary depending on office requirements, visa allocations, and additional regulatory approvals. Indicative costs include the free zone business license fee, registration charges, and any applicable SCA approval fees.
The general setup process involves the following steps:
Step 1 - Business Activity Selection: Confirm Activity Code 6612.9 and ensure the proposed activities align with the license scope.
Step 2 - Company Structure: Choose the appropriate legal entity, such as a Free Zone Limited Liability Company (FZ-LLC).
Step 3 - Application Submission: Submit the business license application to Dubai South Business Hub with the required documentation.
Step 4 - Regulatory Approvals: Obtain relevant approvals from the UAE Securities and Commodities Authority, as this activity falls under a regulated financial category.
Step 5 - Office Space: Select a suitable facility within Dubai South, ranging from flexi-desk options to dedicated office units.
Step 6 - Visa Processing: Apply for investor and employee visas as required.
Step 7 - Bank Account Opening: Establish a corporate bank account with a UAE-based financial institution.
Licensing and Compliance Requirements
Operating as a local shares and bonds broker in Dubai requires adherence to both free zone regulations and broader UAE financial services legislation. Key compliance obligations include:
Registration with the UAE Securities and Commodities Authority (SCA) and obtaining the relevant brokerage license from that authority
Compliance with UAE Federal Law No. 4 of 2000 concerning the Emirates Securities and Commodities Authority and Market
Anti-money laundering (AML) and counter-terrorism financing (CTF) obligations under UAE Federal Decree-Law No. 20 of 2018
Maintaining minimum capital requirements as stipulated by the SCA
Appointing qualified compliance officers and ensuring staff hold appropriate professional certifications
Regular reporting and audit submissions to relevant regulatory bodies
Why Dubai South Is Well-Positioned for Securities Brokerage
Dubai South Business Hub Free Zone sits adjacent to Al Maktoum International Airport and the Expo City district, positioning it at the heart of Dubai's emerging commercial and logistics corridor. For financial services firms, the free zone offers 100% foreign ownership, full repatriation of profits and capital, and no restrictions on currency exchange. The proximity to major transport infrastructure also facilitates connectivity with regional and international counterparts, while the free zone's business support services help reduce administrative burdens during setup and ongoing operations.
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