XM wins UAE SCA license, widening regulated access to FX and CFDs across the Emirates
Global broker XM has secured a Category 5 authorization from the UAE’s Securities and Commodities Authority, enabling it to service retail traders onshore across the Emirates—a move that could intensify competition in the fast-growing Gulf FX market and deepen local liquidity.
XM deepens Middle East footprint with onshore authorization
XM, which says it serves more than 15 million clients globally, can now operate under SCA oversight in the UAE’s mainland jurisdiction. The approval advances the broker’s regional strategy as Dubai and Abu Dhabi position themselves as global finance hubs. The license comes amid heightened demand for regulated derivatives access, tighter compliance expectations, and a shift by international platforms to secure local permissions across the GCC.
The SCA’s framework sits alongside the Dubai Financial Services Authority (DFSA) and Abu Dhabi Global Market’s FSRA, and is central to onshore retail market supervision outside financial free zones. By operating under the SCA, XM can directly target UAE residents with localized onboarding, Arabic- and English-language support, and compliant marketing via its new domain, www.xm.ae.
Why it matters for traders
Stronger regulatory cover and local service often translate to clearer client protections, faster dispute resolution, and structured disclosures on leverage, margin, and product risks. For brokers, onshore licensing typically supports deeper payment rails, better KYC workflows, and improved retention—key in a market where the AED’s USD peg shapes FX behavior and cross-border flows.
Key Points
- XM secures a Category 5 license from the UAE’s Securities and Commodities Authority.
- Approval enables onshore servicing of UAE clients with localized onboarding and support.
- New website www.xm.ae launches in Arabic and English.
- Move signals intensifying competition among regulated brokers in the Gulf.
- Stronger regulatory oversight expected to bolster client confidence and product transparency.
Market context
The UAE’s push to attract global market infrastructure and brokers has accelerated in 2024–2025, supported by robust capital inflows, high oil-linked fiscal buffers, and a policy focus on regulatory clarity. For FX participants, the environment combines a USD-pegged currency, rising household participation in multi-asset platforms, and broader use of hedging tools by SMEs.
In recent months, industry data have pointed to steadier retail turnover but more selective risk-taking as rate-cut expectations ebb and flow. Regulated expansion by large platforms like XM tends to compress spreads at the margin, improve platform resilience during high-volatility events, and encourage better education standards—factors that can moderate drawdowns when FX volatility spikes.
What XM says
XM’s leadership described the approval as a long-term commitment to the UAE, emphasizing regulatory alignment and client transparency. The firm plans to leverage its global product suite and education resources for local users, aligning with the region’s appetite for multilingual content and compliance-led onboarding.
What traders should watch next
– Product scope and leverage caps disclosed under SCA rules
– Rollout pace for account tiers, funding methods, and Arabic-language education
– Any shifts in spreads and execution quality during high-volatility sessions
– Broader broker licensing momentum across the GCC and its impact on pricing
FAQ
What does XM’s SCA Category 5 license allow?
The authorization permits XM to operate under the UAE’s onshore securities regulator and offer its services to UAE residents in a regulated environment. Specific permissions and product parameters are defined by the SCA and disclosed by the firm to clients during onboarding.
How does this change the experience for UAE clients?
Clients can expect localized onboarding, Arabic- and English-language support, UAE-focused disclosures, and operations subject to SCA oversight, which generally enhances transparency and recourse.
Is www.xm.ae live?
Yes. XM has launched its UAE website in Arabic and English to serve onshore clients.
Will spreads or leverage change under the new license?
Leverage, margining, and product availability depend on local regulatory requirements and the firm’s risk policies. Traders should review the terms and disclosures provided on account opening.
What does this mean for the Gulf’s FX market?
More onshore licenses typically improve market depth and standards, foster competitive pricing, and expand education resources. That can support more resilient trading conditions during global macro events.
Is the SCA the only market regulator in the UAE?
No. The SCA oversees onshore markets across the UAE, while the DFSA (DIFC) and FSRA (ADGM) supervise their respective financial free zones. XM’s approval is from the SCA.
Are there risks in trading FX and CFDs?
Yes. Leveraged products carry significant risk and can lead to losses exceeding initial capital. Traders should assess suitability, use risk controls, and read all disclosures carefully.
This report was prepared by BPayNews for informational purposes only.
