XM Gains SCA Category 5 License in Dubai

XM has expanded its regulatory footprint in the Middle East with a newly obtained Category 5 license from Dubai’s Securities and Commodities Authority (SCA). The company intends to activate the license before the end of 2025.

The SCA register shows that the regulator granted the licence to XM Financial Products Promotion, a Dubai-based entity established in January this year. Alongside the new license, XM has set up a local office in the iconic Opus Tower at Business Bay, further cementing its presence in the region.

Under SCA’s framework, a Category 5 license allows brokers to operate in a capacity similar to introducing brokers (IBs). Holders may promote their services to UAE-based clients and direct them to onboard under non-UAE entities. However, the SCA prohibits them from holding client funds locally or executing trades—activities it reserves for the more comprehensive Category 1 licence.

XM has clarified that the Category 5 designation aligns well with its current strategy, which focuses on promoting services in the UAE market rather than executing trades domestically. Nonetheless, the broker has not ruled out applying for a full Category 1 license in the future, keeping its options open as it grows.

XM Gains SCA Category 5 License in Dubai

The Dubai authorisation adds to XM’s extensive global regulatory portfolio. The company is already licensed in Cyprus, Belize, Seychelles, Mauritius, and South Africa. Its sister brand, Trading.com, also maintains licenses in the United States, the United Kingdom, Cyprus, and Australia.

XM is no stranger to Dubai regulation, either. It is already supervised by the Dubai Financial Services Authority (DFSA), which oversees companies operating within the city’s free-trade zones.

XM’s move comes amid a broader trend of international brokers entering the Dubai market. Exinity, VT Markets, Eightcap, EC Markets, and Taurex have recently obtained Category 5 licenses, while firms like Plus500, XTB, and RoboMarkets opted for the full Category 1 license.

The surge of interest highlights Dubai’s role as a magnet for high-value traders. For instance, Capital.com reported that over 52 percent of its first-half 2025 trading volume came from the Middle East, with UAE traders contributing the bulk of that activity. Likewise, CFI Financial handled a record $1.51 trillion in trading volume in Q2 2025 alone, nearly eclipsing its full-year total for 2024.

With its new SCA license and office in Business Bay, XM is positioning itself to capture a growing share of this lucrative market, as global competition intensifies in the UAE’s financial hub.

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