UAE Securities & Commodities Authority – SCA Category 5 License

The UAE continues to solidify its position as a global financial hub with a progressive regulatory framework that attracts financial services providers from around the world. One of the key licenses offered by the UAE Securities and Commodities Authority (SCA) is the Category 5 license, designed for firms offering arrangement and advisory services related to securities and investment products.

What is the SCA Category 5 License?

The Category 5 license falls under the provisions of the SCA Rulebook, established under Board of Directors’ Decision No. (13/R.M) of 2021. It authorises licensed entities to:

• Provide financial consulting and advisory services

• Promote investment products

• Introduce UAE-based clients to other regulated entities abroad for receiving financial services, provided that proper due diligence has been conducted on these counterparties

This license is ideal for firms looking to serve clients in the UAE while collaborating with global financial institutions.

Key Benefits

• Access to UAE-based clients for advisory and promotional services

• Cross-border flexibility: Introduce clients to international financial service providers

• A well-defined regulatory framework under the SCA Rulebook

• Credibility and trust through SCA regulation

Capital Requirements

To obtain a Category 5 license, the applicant must demonstrate a minimum paid-up capital of AED 500,000 (approximately USD 136,000), which must be deposited into the corporate bank account of the licensed entity.

Approval Timeline

The licensing process is streamlined and divided into two stages:

• Initial Approval: Approximately 15 working days

• Final Approval: Approximately 20 working days after full submission and acceptance of all required documents

Core Requirements

To apply for the SCA Category 5 license, the following conditions must be met:

• The company must be incorporated in the UAE

• Must comply with SCA licensing requirements

• Appoint at least one UAE-resident Director who is “fit and proper”

• Appoint a resident Head of Compliance who meets SCA’s fitness criteria

• Depending on the scale and nature of services, additional qualified staff may be required

• Physical office space within the UAE is mandatory

Why Work with Alliance Advisers?

At Alliance Advisers, we specialise in regulatory advisory, corporate structuring, and financial licensing solutions in the UAE and globally. With our proven expertise in handling SCA applications and a deep understanding of the local compliance environment, we can guide you through every step, from company incorporation to final approval.

We ensure that your business is aligned with regulatory standards, helping you build trust and credibility in the market while maintaining operational efficiency.