Retail broker Taurex has received a Category Five license from the Securities and Commodities Authority (SCA) in the United Arab Emirates (UAE).

The license allows brokers based in the UAE to market their services and act as an introducer for firms based outside of the UAE, but which have a regulatory framework that is acceptable to the local regulator.

For example, CMC Markets has set up a Bermuda entity, which it can introduce UAE clients to via its Category Five license.

The SCA is also a federal body in the UAE, meaning brokers that get approval from the regulator can offer their services across the country, rather than in one of the individual emirates.

A number of brokers, including ATFX and BDSwiss, have taken the license over the last 12 months.

Taurex’s main base of operations is in Dubai and the company does target clients in the wider region. The company has a license in the UK and in the Seychelles. Taurex also recently launched a prop trading brand called Atmos.