X-Trade Brokers, known by its trade name XTB, has been granted through its branch XTB MENA a category three license from the Dubai Financial Services Authority (DFSA) to operate in the country. According to the announcement made on Tuesday, the green light was given by the financial watchdog on July 8.
With the next step in the regulatory process, the broker will be expanding its offering to clients in the Middle East and North Africa, the firm said in a press release. The announcement has been hinted at by XTB since the start of the year, but most recently, in April.
“Today we have made a very significant step in continuing our global development strategy by obtaining the DFSA license, which allows XTB to offer its services to clients in the MENA region,” XTB CEO, Omar Arnaout, said in a statement.
At the start of the year, the broker said it was seeking a license from the Dubai Financial Services Authority after incorporating its new subsidiary XTB MENA Limited in the Dubai International Financial Center (DIFC). The addition of this coveted license extends the group’s regulatory arsenal to include regulated companies authorized by CySEC in Cyprus, the KNF in Poland and the FCA in the United Kingdom.
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Advantages of the New License
This new license will allow XTB to provide its range of FX and CFDs products to retail and professional clients not only from the UAE but also to expand the offering to the other GCC states, meaning Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and North Africa.
The Dubai International Financial Centre (DIFC) is a financially free federal area, wholly separated from the rest of the country and features its own legal system and courts. Also, The DFSA has been receiving increased interest from authorized firms and global brokers to offer FX trading to retail customers in or from the DIFC.
“With XTB entering the MENA region, local investors gained a partner many had been waiting for – a trustworthy, experienced global financial institution with a solid and successful track record from numerous regulated markets,” said Achraf Drid, who will run XTB MENA as its Senior Executive Officer.
“XTB is a perfect match for local investors – being a trusted stock listed company offering high level of investment possibilities – a true one-stop-shop for investors.”