Start a Brokerage in Local Securities Business in Dubai
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
Brokerage in Commodities Listed in Local Markets Business License
Brokerage In Securities Listed In Foreign Markets Business License
Local Shares & Bonds Brokers Business License
