Setting up securities and financial products in mainland UAE

The UAE has positioned itself as a major player in global finance, with a securities market that’s both well-regulated and full of opportunities. The country’s capital markets have grown rapidly, attracting international firms looking for a stable and business-friendly environment. The UAE’s financial sector now contributes over 13% of the country’s GDP, and its stock markets—Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX)—have seen record-breaking listings and surging investor interest in recent years.

For businesses offering securities trading, investment management, or financial advisory services, setting up in the UAE mainland means access to this growing market. But what does it take to get licensed and operate in this space? Understanding the Securities and Commodities Authority (SCA) requirements is the first step.

Key regulatory bodies for financial services in the UAE

Financial firms in the UAE operate under different regulatory frameworks depending on their location. If a company wants to provide financial services on the mainland, it must be licensed by the Securities and Commodities Authority (SCA). This applies to businesses involved in securities trading, fund management, and financial advisory services.

In contrast, firms based in the financial free zones—DIFC (Dubai International Financial Centre) and ADGM (Abu Dhabi Global Market)—are regulated separately. The Dubai Financial Services Authority (DFSA) oversees firms in DIFC, while the Financial Services Regulatory Authority (FSRA) handles ADGM. These zones have their own licensing processes, separate from the mainland system.

Banking and stored value facilities (SVF), such as digital wallets and payment providers, fall under the UAE Central Bank. While the SCA regulates capital markets, the Central Bank governs broader financial institutions.

Licensing process for securities & financial products in mainland UAE

Operating in the UAE’s financial sector requires meeting strict regulatory requirements, starting with securing a Securities and Commodities Authority (SCA) license. The type of license depends on the services a firm provides, such as securities trading, asset management, investment funds, financial consultancy, or brokerage.

The licensing process

Obtaining an SCA license involves two key stages:

1. Initial approval – The company submits a business plan, financial feasibility study, and compliance documents for review. This stage usually takes 20–30 days.
2. Final licensing – After meeting capital requirements and establishing governance frameworks, firms can apply for final approval. This process typically takes one to two months

Cost considerations

Fees vary based on the license type. A securities dealer license costs around AED 50,000, while a custody services license can go up to AED 500,000.

While the process requires planning and compliance, once approved, firms can operate legally in the UAE’s financial sector and tap into its growing investment market.

Compliance challenges in mainland UAE

Meeting SCA regulations is an ongoing process that can trip up firms that aren’t fully prepared. One of the biggest hurdles is the intensity of regulatory oversight. The SCA regularly audits financial firms, and businesses that fail to keep up with reporting obligations or governance requirements risk fines or even license suspension.

AML and KYC compliance can also be a challenge, especially for smaller firms without dedicated compliance teams that often struggle with the level of resources needed for thorough due diligence on clients.

Capital requirements are another sticking point. Depending on the type of license, firms must maintain specific levels of capital adequacy, which can create financial strain—particularly for new entrants.

The key to managing these challenges is having a solid compliance framework in place from day one. This means staying on top of regulatory updates, investing in the right expertise, and putting robust systems in place to handle audits, reporting, and due diligence efficiently.

Mainland vs. free zones: choosing the right setup for your financial firm

Deciding between mainland UAE and a free zone depends on the nature of the business and target clients. Firms licensed by the SCA can operate directly within the UAE’s financial markets, including the Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX). This allows for broader market reach and easier access to UAE-based investors. On the other hand, free zones like DIFC and ADGM offer strong oversight and familiar English Common Law-based systems, but companies can only serve clients based within the free zone or internationally.

For securities trading, investment advisory, and asset management, many firms opt for a mainland license due to its greater market flexibility and stronger local positioning.

How can Sovereign PPG help?

Sovereign PPG has extensive experience in the UAE financial sector, guiding firms through the SCA licensing process and ensuring full compliance with regulatory requirements. Our team works closely with government authorities, simplifying every stage—from business registration to governance structuring, visa processing, and compliance support.

If you're looking to establish a financial services company in mainland UAE or a free zone, we can provide expert advice and hands-on assistance to ensure a smooth and efficient setup.

Get in touch with us at +971 (0)4 456 1761 for Dubai or +971 (0)2 448 5120 for Abu Dhabi, email us at sovppg@sovereigngroup.com, or fill out the contact form below—we’d be happy to help.