With FXCM opening a local branch and being registered by the local regulator (DMCC) and AC-Markets announcing that 30% of their volume was generated by Middle Eastern customers – does it finally signal a major focus shift of large brokers to this massive and unexploited market?
I’m aware only of several firms specifically targeting ME markets: IFC Market, HY Markets and GFT (also licensed by DMCC). GFS Forex was kicked out a year ago by DFSA. Until now, most firms either offered some support in Arabic or didn’t offer this at all while most of the traffic generated in ME served foreign brokers with local partners serving as Introducing Brokers at best.
Behind the industry curtains I hear a lot of talk regarding Dubai being the prime location for emerging Forex brokers. I’m not fully aware of the benefits but from what I know there is a very bening Forex climate for the establishment of Forex business in Dubai itself.
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My guess is that the new NFA requirements together with increasing local wealth (oil is on the rise again) will drive more and more firms to focus on this market. Not to mention that Forex is legal form of gambling for Muslims (Shari’a compliance is required).
One question that arises is why don’t local entrepreneurs establish their own brand instead of working for others?