XM Secures Dubai Licence, Expands Middle East Presence

XM secures Dubai SCA Category 5 licence, set to promote services in the UAE with plans to activate it before the end of 2025.

Key points:

• XM obtains Category 5 SCA licence in Dubai, allowing it to promote but not execute trades locally.
• The broker will begin using the licence before the end of 2025, strengthening its Middle East presence.

XM has officially entered the Middle Eastern regulatory landscape after securing a Category 5 licence from Dubai’s Securities and Commodities Authority (SCA), Finance Magnates has learned.

The licence was granted to XM Financial Products Promotion, a locally registered entity formed in January 2025. The broker has also established an office in Dubai’s iconic Opus Tower at Business Bay, signaling its growing regional ambitions. XM intends to activate the new licence before the end of this year.

Under the SCA framework, Category 5 licences allow firms to operate in a capacity similar to introducing brokers (IBs). Licence holders are permitted to market and promote financial services in the UAE, directing clients to be onboarded under their offshore entities.

XM Secures Dubai Licence, Expands Middle East Presence

However, the licence does not authorise brokers to hold client funds locally or execute trades—activities that require a Category 1 licence.

According to XM, the new regulatory approval fits its current business model, which focuses on product promotion rather than trade execution. That said, the company has not ruled out applying for a Category 1 licence in the future.

The SCA approval adds to XM’s growing list of global regulatory credentials. The Dubai Financial Services Authority (DFSA), along with regulators in Cyprus, Belize, Seychelles, Mauritius, and South Africa, already licenses the broker

Its sister brand, Trading.com, also holds licences in the United Kingdom and Australia.

XM is the latest major player to join Dubai’s booming brokerage scene. Several brokers—including Exinity, VT Markets, Eightcap, EC Markets, and Taurex—have obtained Category 5 licences in recent months. By contrast, Plus500, XTB, and RoboMarkets pursued the more demanding Category 1 licence to offer full brokerage services.

By obtaining an SCA Category 5 licence, XM has positioned itself at the heart of one of the world’s fastest-growing trading hubs. The approval provides the broker with a strong foothold in the Middle East, while keeping the door open for broader regulatory ambitions in the UAE.

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