PU Prime Embraces the Trend, Expands into the UAE with a Category 5 License

PU Prime is now the newest contracts for differences (CFDs) broker to obtain a license in Dubai, and, similar to many others in the industry, has chosen to pursue a Category 5 license that is equivalent to that of an introducing broker.

The UAE: The Upcoming Center for Brokers

As stated in the records of the Capital Market Authority (CMA), formerly known as the Securities & Commodities Authority (SCA), this license will enable the broker to present and market products provided by various offshore organizations.

Nonetheless, firms holding a Cat 5 licence are prohibited from managing client assets or conducting trades within the local jurisdiction. They are required to direct clients based in the UAE to other offshore organizations.

While the Cat 1 license provides complete brokerage privileges in the UAE, its requirements are significantly more demanding than those of the widely favored Cat 5 license. For example, obtaining a Cat 1 license necessitates a minimum capital of AED 30 million, whereas the Cat 5 license only needs AED 500,000.

Licensees in Category 1 must also uphold larger teams and office arrangements, which involve more advanced control roles and a more robust operational framework.

These elements have probably motivated XM, Exinity, VT Markets, Eightcap, EC Markets, Pepperstone, Taurex, and several other companies to obtain the Cat 5 license in the UAE. On the other hand, certain brokers are prepared to handle the increased expenses. Notable companies like Plus500, XTB, Deriv, and RoboMarkets have acquired Category 1 licenses. Additionally, there are newer firms based in Dubai that have opted for the comprehensive brokerage model.

Expansion Strategy of PU Prime

Established in 2015, PU Prime mainly functions with offshore licenses, including those from Mauritius and Seychelles. Additionally, it is licensed by the South African regulatory authority and secured a license from the Australian regulatory body last year through the acquisition of Admirals' Australian operations.

PU Prime's foray into the UAE indicates that brokers consider this region appealing.