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 Licence 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 Licence Covers

The Business Licence 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 licence 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 Licence Suits

This licence 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

• Licence Type: Business Licence

• 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:

1. Choose your business activity: Confirm activity code 6612.99 aligns with your intended operations.

2. Select a legal structure: Free zone limited liability company (FZ-LLC) is the most common structure for this type of business.

3. Submit your application: Provide required documents including passport copies, business plan, and proof of address.

4. Obtain your licence: Once approved, your Business Licence is issued by Dubai South.

5. Regulatory authorisation: Apply to the SCA for the relevant brokerage authorisation if you intend to execute trades directly on UAE exchanges.

6. Open a corporate bank account: Several UAE banks support free zone entities in the financial sector.

Licence fees at Dubai South Business Hub are competitive relative to mainland and other free zone options. Costs typically include the licence 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.

Frequently Asked Questions

What are the typical costs to set up a brokerage in local securities at Dubai South?

Costs vary depending on the package selected, visa requirements, and office space. Licence and registration fees at Dubai South are generally competitive, and flexi-desk options are available to reduce overhead. It is advisable to request a current fee schedule directly from Dubai South for the most accurate figures.

Can foreign nationals own 100% of the company?

Yes. Dubai South Business Hub Free Zone permits 100% foreign ownership of registered entities, making it straightforward for international entrepreneurs and investors to establish and fully own their brokerage business without requiring a local UAE partner.

What regulatory approvals are needed beyond the free zone licence?

If your brokerage will execute trades on UAE exchanges on behalf of clients, you will need authorisation from the Securities and Commodities Authority. The SCA issues specific brokerage licences and sets out capital, staffing, and operational requirements that must be met before you can begin trading activity.

How long does the setup process take?

The free zone company registration and licence issuance typically takes between three and six weeks, subject to document completeness and any additional regulatory approvals. SCA authorisation may add further time depending on the complexity of your application.

What profit margins can a securities brokerage expect in Dubai?

Margins vary considerably based on business model, client base, and trading volumes. Commission-based models tied to transaction value are common, while some brokers also generate revenue from advisory fees and custody services. The DFM's growing volumes provide a solid base for revenue generation.

Can a Dubai South brokerage facilitate re-export or cross-border securities transactions?

The activity code 6612.99 relates specifically to local securities brokerage. Cross-border or international securities activities may require additional regulatory permissions and potentially a different activity classification. You should seek legal and compliance advice if your business model includes international markets.

What facility requirements apply to a brokerage business at Dubai South?

Dubai South offers a range of office solutions including flexi-desks, serviced offices, and dedicated office spaces. Financial services businesses may be required to maintain a physical office address as part of their regulatory compliance obligations, particularly when applying for SCA authorisation.

Is the UAE corporate tax applicable to free zone brokerages?

The UAE introduced a 9% corporate tax applicable to taxable income exceeding AED 375,000. Free zone entities can benefit from a 0% rate on qualifying income, provided they meet the substance and compliance conditions set out by the Federal Tax Authority. Professional tax advice is recommended to determine your entity's specific position.

Conclusion

Establishing a brokerage in local securities at Dubai South Business Hub Free Zone places your business at the heart of one of the world's most active emerging markets financial ecosystems. With 100% foreign ownership, a clear licensing pathway under activity code 6612.99, and access to the UAE's well-regulated capital markets, the opportunity is both commercially credible and structurally sound. Whether you are an experienced financial professional or an international firm expanding into the region, Dubai South provides the platform, infrastructure, and regulatory environment to support your growth.

To begin your application or to clarify the exact requirements for your specific business model, contact the Dubai South Business Hub team directly and consider engaging a licensed UAE business setup consultant to guide you through the regulatory process efficiently.

References and Citations

• Securities and Commodities Authority (SCA) - Official Website

• Dubai Financial Market (DFM) - Market Data and Statistics

• Dubai South Free Zone - Official Website

• Federal Tax Authority UAE - Corporate Tax Guidance

• Central Bank of the UAE - AML and Compliance Regulations

• UAE Government Portal - Doing Business in the UAE