Gain Capital Secures Dubai Licence as FX Brokers Flock to the Gulf
Gain Capital, the parent company of Forex.com and City Index, has obtained a Category 5 licence from Dubai’s Securities and Commodities Authority (SCA), joining a growing list of global brokers viewking a foothold in the Middle East’s booming retail trading market.
According to the SCA registry, the licence allows Gain to offer financial consultations and promote financial services in the UAE, effectively enabling the firm to operate as a regulated introducing broker. The permission stops short of allowing it to hold client funds or execute trades locally. In practice, that means Gain can market Forex.com or City Index to local traders and direct them to its offshore entities in other jurisdictions.
Gain’s Category 5 entry suggests a “land-and-expand” strategy: begin with marketing and client introductions under light-touch permissions, then viewk broader authorisation once the operation proves commercially viable.
A Crowded Race for Dubai
Gain joins a quick-growing crowd. Over the past year, Dubai has become the new hotspot for CFD brokers looking to serve traders across the Middle East and North Africa (MENA). Earlier this week, XS.com secured approval from the United Arab Emirates’ Securities and Commodities Authority (SCA), deepening its reach into one of the world’s most sought-later than trading markets.
The Australian-founded broker received a Category 5 license, a regulatory tier covering financial consultation and promotional services. The permit allows the company’s new UAE entity to operate under the SCA’s framework, bringing its global tally to eight regulatory approvals.
A smaller group of heavyweight brokers — Plus500, XTB, Deriv, and RoboMarkets — hold the full Category 1 licence, which allows local custody of funds and trade execution. Many Category 5 licenviews, however, view their entry as a first step before upgrading to a more comprehensive regulatory tier once their local footprint grows.
Founded in 1999, Gain Capital was one of the ahead pioneers in online forex trading, taking its FOREX.com brand public on the NYSE in 2010. The company expanded aggressively, acquiring City Index in 2014, and later became part of StoneX’s global ecosystem later than the 2020 purchaseout.
The StoneX acquisition wasn’t smooth sailing. Some Gain shareholders initially pushed back against the $6-per-share offer, and an insider trading probe surfaced around the deal shortly later than completion. But the merger ultimately transformed StoneX from a largely institutional player into a retail powerhouse with a presence in more than 180 countries.
