Plus500 secures lucrative DFSA license in Dubai

abdelaziz Fathi

Plus500 has secured a license from the Dubai Financial Services Authority (DFSA) after it has already incorporated its new subsidiary in the Dubai International Financial Center (DIFC).

Plus500

The Dubai license allows Plus500 to provide its range of FX and CFDs products to retail and professional clients not only in the UAE but also to expand the offering to the other GCC states, meaning Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and North Africa.

The Dubai International Financial Centre (DIFC) is a federal area that is financially-free, completely separated from the rest of the country and features its own legal system and courts.

The DFSA has been receiving increased interest from authorized firms and global brokers to offer FX trading to retail customers in or from the DIFC.

David Zruia, CEO of Plus500, commented: “We are delighted to have received licence authorisation from the DFSA in the UAE and we are excited to bring our market-leading technology capabilities to customers in the region. This is the latest realisation of our strategy to enter new markets, develop new products, and deepen engagement with our customers. Consequently, Plus500 has a valuable and growing portfolio of twelve licences, ensuring that our growing business continues to be built on a strong regulatory foundation.”

Within Dubai’s International Financial Centre, the DFSA is the regulatory authority that issues all Forex Broker licenses and regulates all financial and subsidiary services conducted.

However, the DFSA has very strict guidelines in place for obtaining a Dubai forex license, as well as for conducting forex business. Specifically, obtaining a Dubai forex license is a complicated procedure that involves many legal limitations that revolve around the country’s prohibitions on banking activity in the local currency as transactions in UAE Dirhams are strictly prohibited in the center.

Other than AML compliance, FX brokers also need to have systems and controls such as intra-day and end-of-day counterparty and settlement limits, segregation of functions, and other risk measures.

Since 2020, Plus500 has obtained licences in the US, Japan, Estonia, the Seychelles and the UAE, including through acquisitions.

The Israeli-based, but London-stock market listed broker said last month it expects annual revenue and earnings to be in line with analysts’ estimates. In particular, the company expects to report full-year revenue at $832 million, up from $718 million in 2021.

Meanwhile, Plus500’ customer trading performance for FY 2022 was approximately $193 million relative to just $15.9 million in the previous year. The broker expects the contribution of this key performance measure to be broadly neutral over time.

Overall, Plus500 said the board now expects FY 2022 EBITDA to grow by more than 17 percent to $454 million compared to $387.1 million in 2021.

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