If you’re planning to launch a brokerage firm in the UAE, securing an SCA license is the most credible path forward. In this guide, we’ll break down everything you need to know about the SCA (Securities and Commodities Authority) license, how to apply, which category is right for you, and how to fast-track the process.
What Is an SCA License?
The Securities and Commodities Authority (SCA) is the official financial regulator in the UAE, responsible for licensing and supervising financial service providers, including forex brokers, investment firms, and market makers.
An SCA license allows your brokerage to operate legally and offer financial products to retail and institutional clients within the UAE.
Why Get an SCA License in the UAE?
- Legal access to UAE clients (SCA is the only route to retail forex)
- Banking trust & payment integration
- Marketing freedom with compliance (run Meta, Google Ads legally)
- Higher conversion with credibility badge
- Long-term business stability
SCA License Categories Explained
The SCA offers two relevant license categories for brokerage firms:
Category 1 – Full Dealing License
- Market making, dealing in securities, forex, and derivatives
- Serve retail + institutional clients
- Requires stronger capital and local presence
Category 5 – Financial Advisory & Promotion
- Restricted to advisory and marketing of financial products
- Ideal for firms wanting to operate as introducing brokers or lead generators
- Lower capital requirements
Want to see a full comparison? Read our breakdown of SCA Category 1 vs 5 licenses.
Step-by-Step: How to Get an SCA License in the UAE
Step 1: Choose the Right License Category
- Are you planning to execute trades and hold client funds? → Go for Category 1
- Are you only advising or promoting third-party financial products? → Go for Category 5
Step 2: Set Up a Legal Entity in the UAE
- Must be a local entity (Mainland or Financial Free Zone)
- Most choose Abu Dhabi or Dubai mainland structure for fast-track processing
- Hire a local service agent or consultant to handle the legalities
Step 3: Prepare Core Documents
- Business plan
- Company structure & management team CVs
- Proof of capital (depending on license type)
- Office lease agreement
- Compliance & risk management policies
Step 4: Submit Application to the SCA
- Done through their official e-services portal
- You’ll need to create an SCA account and submit scanned documents
- Expect a response or request for additional info within 15–30 days
Step 5: Undergo Background & Financial Checks
- SCA will vet all shareholders, directors, and key personnel
- Criminal clearance + financial statements required
- Fit & proper assessment for a compliance officer
Step 6: Office Inspection (if required)
- For Category 1, SCA may inspect your local office
- Ensure you have a physical space that meets regulatory standards
Step 7: Get Approval & Start Operations
- Once approved, your company will be listed as an SCA-licensed entity
- You can now legally advertise, open accounts, and serve clients in the UAE
| Item | Category 1 | Category 5 |
|---|---|---|
| Application Fee | AED 20,000-30,000 | AED 10,,000-15,000 |
| Capital Requirment | Capital Requirement | AED 259k-500k |
| Processing Time | 3-6 months | 2-4 months |
Common Mistakes That Delay SCA Approval
– Incomplete documentation
– No physical presence in UAE
– Lack of a qualified compliance officer
– Using offshore entities to apply
– Submitting a weak business model
FAQs About the SCA License
Is an SCA license mandatory to trade in the UAE?
Yes, especially if you’re targeting retail clients or running paid ads.
Can a foreigner apply for an SCA license?
Yes, but the company must be registered locally, and UAE-resident compliance staff is usually required.
How can I speed up the SCA licensing process?
Working with a firm like WBG can help prepare, submit, and manage the full application end-to-end.
