Launching a brokerage in the UAE is often perceived as an “all or nothing” decision: either commit to a fully regulated onshore brokerage from day one, or operate offshore with limited local credibility.

In reality, there is a third, more strategic path—one that balances regulatory legitimacy, capital efficiency, and speed to market.

At Alliance Advisers, we help founders and investors implement a dual-license brokerage model designed specifically for startups and growth-stage firms entering the UAE market.

The Challenge for New Brokerages

New brokerages face several competing pressures:

• The need for regulatory credibility in the UAE
• High capital requirements for full onshore brokerage licenses
• Banking and payment provider scrutiny
• The need to onboard UAE retail and professional clients legally
• Pressure to launch quickly without structural shortcuts

Cutting corners may accelerate launch—but it almost always creates long-term regulatory and banking problems.

The Dual-License Solution

The dual-license model separates execution from market access, using two clearly defined entities:

1️⃣ Offshore Brokerage License

The offshore entity acts as the operating broker, responsible for:

• Client onboarding and KYC
• Trading accounts and execution
• Liquidity provider connectivity
• Risk management and hedging
• Holding client funds in segregated accounts

This entity generates the core trading revenue and scales internationally.

2️⃣ UAE SCA Category 5 License

The UAE onshore entity operates under the Securities and Commodities Authority (SCA) – Category 5, which allows:

• Promotion and marketing of financial services
• Client introduction and relationship management
• Education and financial awareness
• Local presence and regulatory legitimacy

Importantly, the UAE entity does not execute trades, hold client funds, or act as a counterparty.

Why This Model Works

This structure allows a brokerage to:

• Enter the UAE market legally and transparently
• Engage UAE banks, PSPs, and partners
• Serve UAE retail and professional clients
• Reduce initial capital pressure
• Maintain a clean regulatory narrative
• Create a clear upgrade path to SCA Category 3 or Category 1

It is not regulatory arbitrage. It is regulatory sequencing done correctly.

Built for Growth, Not Workarounds

At Alliance Advisers, we design this model with one principle in mind: Whatever you build today must still work when regulators, banks, and investors look deeper tomorrow.

That means:

• Clear disclosures to clients
• Clean separation of roles
• Arm’s-length intercompany agreements
• Audit-ready structures

This is how serious brokerages are built.

📍 Alliance Advisers 🌐 www.allianceadvisers.com 📞 Phone: +971562453600

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