Poland's XTB is expanding its footprint in the United Arab Emirates after securing Category 1 and Category 2 licences. The new authorisations will allow the broker to locally onboard clients and execute trades in the country, broadening its ability to serve traders in the region.
Announced on Friday, the broker stated that the two licences will enable it to offer "more advanced investment products" to UAE traders in the future. The development marks a step up from its previous operating model in the market.
Building on Existing UAE Presence
XTB has maintained a presence in the UAE for several years. It has been operating under a licence granted by the Dubai Financial Services Authority (DFSA) since 2021. In 2024, the broker also obtained a Category 5 licence from the Capital Markets Authority (CMA).
While the Category 5 licence allowed XTB to offer its services locally as a mainland company, it only permitted the broker to market and promote products offered locally. According to the description, the Category 5 framework resembles an introducing broker model, enabling brokers to promote products of an offshore entity and onboard clients under that offshore entity, rather than fully operating as a local broker.
With the addition of Category 1 and Category 2 licences, XTB will be able to operate with a broader scope in the UAE market, including direct client onboarding and trade execution under local authorisation.
Strategic Importance of the UAE
"Receiving authorisation from the CMA is an important development for our business in the region," said Achraf Drid, Managing Director, XTB MENA. "It enables us to operate with greater proximity to our clients while adhering to one of the most respected regulatory environments globally."
Drid added that "the UAE has created a highly attractive ecosystem for financial services firms, combining regulatory clarity with long-term economic vision. This is a market where we see sustained opportunity, and where we intend to build for the future."
UAE as a Hub for CFD Brokers
The UAE has become a key hub for contracts for difference (CFD) brokers. FinanceMagnates.com previously highlighted that most brokers entering the UAE opt for the Category 5 licence, which has lower entry barriers and capital requirements. Dozens of CFD brokers have used this route to establish a presence in the country.
Only a smaller number of firms, including Plus500, Deriv, RoboMarkets and some local companies, have become full brokers in the UAE. Recently, FXTM revealed its intention to upgrade its Category 5 licence to a Category 1 licence in the country, indicating a broader trend of brokers seeking more comprehensive regulatory permissions.
Within this context, XTB's acquisition of Category 1 and Category 2 licences underscores its commitment to deeper engagement in the UAE market and to expanding the range of investment products it can offer locally.
