Brokerage group Deriv announced on Thursday that it has acquired a Category 1 license from the Securities and Commodities Authority (SCA) in the United Arab Emirates (UAE).
Traders in the region can access the broker’s local entity via separate URL – Deriv.ae.
Unlike in other regions, UAE customers cannot access binary options trading with the broker’s local entity.
Instead the company only offers access to CFDs via the MetaTrader 5 platform for UAE customers, who can also get leverage of up to 500:1.
“As we enter our 26th year, the SCA license for our UAE entity anchors our next chapter of growth,” said Rakshit Choudhary, who became sole CEO of Deriv in May this year.
“We’re truly impressed by the UAE’s fintech-forward vision, its commitment to investor education, and robust regulatory framework, which align perfectly with what we stand for. This market is especially exciting given its young, digital-first population, leading global cryptocurrency adoption. We’re eager to empower clients across the UAE with our innovative platforms, expanded financial offerings along with comprehensive education, and trusted safeguards which will transform their trading experience.”
The acquisition of a Category 1 license is not unique but it is much rarer among the brokers entering the UAE.
Most firms only get a Category 5 license, which allows them to introduce business to a related entity but not hold client funds or offer trading services locally.
“The UAE is uniquely positioned as a global financial hub, with its forward-thinking regulatory environment and thriving fintech ecosystem,” added Joanna Frendo, Executive Director of Deriv Capital Contracts & Currencies L.L.C and Chief Compliance Officer at Deriv Group.
“Obtaining our SCA licence was fundamental to our regional strategy, allowing us to serve clients in the UAE with the transparency, safeguards, and service quality that have defined Deriv for over two decades.”
