Start a Brokerage in Local Securities Business in Dubai
Topic Summary
Understand the UAE Securities Market First
The UAE hosts two major exchanges, the ADX and DFM, with the DFM alone exceeding AED 700 billion in market capitalisation. Growing foreign institutional investment following MSCI and FTSE Russell index inclusions makes this a commercially attractive environment for licensed brokers.
Use Activity Code 6612.99 for Compliance
Your brokerage must be registered under activity code 6612.99 in the Financial category to operate legally within the UAE's capital markets framework. This code covers intermediary services for equities, bonds, and other locally listed instruments on UAE exchanges.
Choose Dubai South Business Hub Free Zone
Dubai South offers a cost-effective and strategically located platform for setting up a local securities brokerage. It supports up to 100% foreign ownership and a typical setup timeline of just three to six weeks.
Select the Right Legal Structure Early
A Free Zone Limited Liability Company (FZ-LLC) is the most common and practical structure for this type of financial business. Choosing the correct structure from the outset simplifies licensing, banking, and regulatory compliance.
Secure SCA Authorisation to Execute Trades
A free zone business license establishes your legal entity, but direct trade execution on UAE regulated exchanges also requires authorisation from the Securities and Commodities Authority (SCA). Factoring this step into your setup timeline is essential.
Know the Corporate Tax Implications
The UAE corporate tax rate of 9% applies to qualifying income above AED 375,000, which is relevant for any profitable brokerage operation. Understanding this threshold helps with financial planning before and after launch.
This License Suits a Range of Professionals
Independent financial professionals, regional investment firms, and international brokers seeking a UAE presence can all benefit from this license structure. Entrepreneurs with backgrounds in trading, finance, or investment advisory are particularly well positioned to apply.
Dubai's financial markets have grown into one of the most dynamic investment corridors in the Middle East, attracting institutional players and independent brokers alike. If you are looking to establish a brokerage in local securities, Dubai South Business Hub Free Zone offers a structured, cost-effective, and strategically positioned platform to do exactly that. With activity code 6612.99 under the Financial category, a Business License for brokerage in local securities gives you a compliant and credible foundation to operate within the UAE's regulated capital markets environment.
Understanding the UAE Securities Market
The UAE is home to two major stock exchanges: the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM). The DFM recorded a market capitalisation exceeding AED 700 billion in recent years, and trading volumes have steadily increased as the UAE attracts foreign institutional investment following index inclusions in MSCI and FTSE Russell benchmarks. This growth creates real commercial opportunity for licensed securities brokers operating within a free zone framework.
Brokerage in local securities refers to the activity of acting as an intermediary in the buying and selling of shares, bonds, and other financial instruments listed on UAE domestic exchanges. This is a regulated activity that requires proper licensing and, where applicable, coordination with the Securities and Commodities Authority (SCA).
What the License Covers
The Business License under activity code 6612.99 permits the holder to engage in brokerage activities related to local securities markets. This includes:
Acting as an intermediary for clients buying and selling listed securities on UAE exchanges
Providing order execution services on behalf of retail and institutional investors
Facilitating transactions in equities, bonds, and other locally listed instruments
Operating within the compliance framework set by UAE financial regulators
It is important to note that while the free zone license establishes your legal entity, brokers dealing directly with the public on regulated exchanges must also obtain the appropriate authorisation from the SCA or the relevant exchange authority.
Who This License Suits
This license is well suited to a range of professionals and businesses, including:
Financial professionals seeking to establish an independent brokerage firm in the UAE
Regional investment firms looking to expand into Dubai's capital markets
International brokers wishing to set up a UAE-based subsidiary or representative structure
Entrepreneurs with a background in finance, trading, or investment advisory services
Key Stats at a Glance
Infographic: Brokerage in Local Securities - Key Facts
Activity Code: 6612.99
License Type: Business License
Category: Financial
Free Zone: Dubai South Business Hub
DFM Market Capitalisation: Over AED 700 billion
Foreign Ownership: Up to 100% permitted
Typical Setup Timeline: 3 to 6 weeks
UAE Corporate Tax Rate: 9% (applicable to qualifying income above AED 375,000)
Setup Steps and Costs
Establishing your brokerage in local securities at Dubai South Business Hub involves a clear sequence of steps:
Choose your business activity: Confirm activity code 6612.99 aligns with your intended operations.
Select a legal structure: Free zone limited liability company (FZ-LLC) is the most common structure for this type of business.
Submit your application: Provide required documents including passport copies, business plan, and proof of address.
Obtain your license: Once approved, your Business License is issued by Dubai South.
Regulatory authorisation: Apply to the SCA for the relevant brokerage authorisation if you intend to execute trades directly on UAE exchanges.
Open a corporate bank account: Several UAE banks support free zone entities in the financial sector.
License fees at Dubai South Business Hub are competitive relative to mainland and other free zone options. Costs typically include the license fee, registration fee, and any applicable visa allocation charges. Exact pricing should be confirmed directly with Dubai South, as fee structures are updated periodically.
Licensing and Compliance Requirements
Operating as a securities broker in the UAE carries specific regulatory obligations. Key compliance considerations include:
Registration with the Securities and Commodities Authority for brokerage activities involving public investors
Anti-money laundering (AML) and Know Your Customer (KYC) procedures in line with UAE Central Bank and SCA guidelines
Maintaining adequate capital requirements as stipulated by the SCA
Appointing qualified compliance officers and ensuring staff hold relevant certifications
Filing periodic reports with regulators and maintaining proper audit trails
Why Dubai Is Well Positioned for Securities Brokerage
Dubai offers a combination of regulatory clarity, infrastructure, and geographic advantage that few other jurisdictions can match. The UAE's inclusion in major global indices has drawn significant foreign institutional capital into local markets. Dubai South's proximity to Al Maktoum International Airport and its position as a logistics and financial hub further support business connectivity. The absence of personal income tax, a 0% withholding tax on dividends for qualifying entities, and a transparent legal framework make Dubai an attractive base for financial services businesses.
Furthermore, the UAE's network of double taxation treaties and its position as a gateway between European, African, and Asian markets gives brokers based here a genuine competitive advantage when servicing international clients with interests in UAE-listed assets.
Related Activities
Frequently Asked Questions
