Table of Contents
Frequently Asked Questions
What is the Foreign Securities Promotion licence in Dubai and what does it cover
The Foreign Securities Promotion licence, operating under activity code 7310.97, authorises firms to promote and market securities issued by foreign entities to investors based in the UAE. It falls within ISIC Division 73 — Advertising and Market Research.
The scope includes equities, bonds, funds, ETFs, and structured products that are listed or domiciled outside the UAE. It is strictly a promotion and marketing activity — it does not cover trade execution, personalised investment advice, or custody services, each of which requires a separate licence.
Who needs a Foreign Securities Promotion licence in Dubai
Any firm that intends to market or promote foreign securities to UAE-based investors must hold this licence before approaching clients. The typical client base includes institutional investors, high-net-worth individuals (HNWIs), expatriate professionals, and regional family offices.
The requirement applies regardless of whether your entity is incorporated on the mainland or within a free zone. Jurisdiction choice affects corporate structure and ownership, but it does not remove the federal regulatory obligation imposed by the Securities and Commodities Authority (SCA).
Which regulatory body oversees the Foreign Securities Promotion activity in the UAE
The Securities and Commodities Authority (SCA) is the primary federal regulator for all securities-related activities in the UAE, including the promotion of foreign securities. Its oversight applies to all entities operating in this space, whether on the mainland or in a free zone.
Free zone entities, such as those incorporated at Meydan Free Zone, must still obtain SCA no-objection or specific approval before conducting any regulated promotional activity, even if their free zone authority has already issued a trade licence.
How long does it take to set up a Foreign Securities Promotion licence in Dubai
The typical setup timeline depends on your chosen jurisdiction. A free zone incorporation generally takes 2–4 weeks, while a mainland (DED) setup typically takes 4–8 weeks.
The most common cause of delays is incomplete documentation at the SCA stage. The process is sequential, and cutting steps creates setbacks rather than saving time. Ensuring all documents are prepared correctly before submission is the most effective way to stay on schedule.
What are the key compliance obligations for a firm holding this licence
Firms must operate within SCA's disclosure and approval framework. All promotional materials must be reviewed and approved by the SCA before distribution — this is not a post-publication notification process.
AML and KYC obligations apply under UAE federal law, requiring documented compliance procedures and client due diligence that must be demonstrable to regulators on request. Appointing a qualified compliance officer is a structural requirement, not optional.
Ongoing reporting to the SCA is mandatory once licensed. Failure to comply carries administrative penalties, and repeated non-compliance risks licence suspension. Compliance infrastructure should be built before operations begin.
Does UAE corporate tax apply to firms holding a Foreign Securities Promotion licence
Yes. Corporate tax registration with the Federal Tax Authority (FTA) is mandatory for all licensed entities. The UAE corporate tax rate of 9% applies to taxable income above AED 375,000.
Financial services entities, including those engaged in foreign securities promotion, are not exempt from this obligation. Tax registration should be factored into the setup process from the outset, not treated as an afterthought after the licence is issued.
What is the difference between choosing a mainland versus a free zone structure for this licence
Both mainland (DED) and free zone structures can hold activity code 7310.97, but they differ in key ways. Free zones offer 100% foreign ownership and faster incorporation timelines, typically 2–4 weeks. Mainland structures offer broader client reach without geographic restrictions and typically take 4–8 weeks to set up.
Critically, SCA oversight applies in both cases. Choosing a free zone does not remove the federal regulatory requirement to obtain SCA approval before conducting any regulated promotional activity. Your jurisdiction choice affects corporate structure and ownership rules, not your compliance obligations.
What is the first step in setting up a Foreign Securities Promotion licence in Dubai
The first step is to choose your jurisdiction — either mainland (DED) or a recognised free zone — based on your ownership preferences, target client base, and operational needs. Free zones are often preferred for their 100% foreign ownership and faster timelines.
The second step is to reserve your trade name and confirm that activity code 7310.97 is approved under your chosen jurisdiction before proceeding with incorporation. Verifying activity eligibility early prevents wasted effort if a particular jurisdiction does not support the activity under its approved list.
Foreign Securities Promotion License in Dubai
Dubai sits at the intersection of global capital flows, and if you intend to market or promote foreign securities to investors here, you need the right regulatory footing before you approach a single client.
This guide covers what the Foreign Securities Promotion licence covers, who needs it, how to set it up in Dubai, and what the commercial opportunity looks like in 2024 and beyond.
Key Stats at a Glance
| Activity Name | Foreign Securities Promotion |
| Activity Code | 7310.97 |
| Regulatory Body | Securities and Commodities Authority (SCA), UAE |
| ISIC Classification | Division 73 — Advertising and Market Research |
| Licence Type | Professional / Financial Services |
| Typical Setup Timeline | 2–4 weeks (free zone); 4–8 weeks (mainland) |
| Minimum Capital Requirement | Subject to SCA guidance |
| Target Market | Institutional investors, HNWIs, expat professionals, regional family offices |
What This Licence Covers and Who Needs It
Activity code 7310.97 sits within ISIC Division 73 — Advertising and Market Research. In practical terms, it authorises the promotion and marketing of securities issued by foreign entities to investors based in the UAE.
The scope covers equities, bonds, funds, ETFs, and structured products that are listed or domiciled outside the UAE. This is a promotion and marketing activity — it does not extend to trade execution, investment advisory, or custody. If your firm intends to execute trades or provide personalised investment advice, those activities require separate, distinct licences.
The typical client base includes institutional investors, high-net-worth individuals, expatriate professionals, and regional family offices — all of whom are active in Dubai and looking for access to international markets.
Critically, SCA oversight applies regardless of whether the entity is incorporated on the mainland or within a free zone. Jurisdiction choice affects your corporate structure, ownership, and operational scope — but it does not remove the federal regulatory obligation.
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Explore Over 2,500+Regulatory Framework and Compliance Obligations
The Securities and Commodities Authority (SCA) is the primary federal regulator for all securities-related activities in the UAE. Any firm promoting foreign securities to UAE-based investors must operate within SCA's disclosure and approval framework. Promotional materials must be reviewed and approved before distribution — this is not a post-publication notification process.
AML and KYC obligations apply under UAE federal law. Your firm must maintain documented compliance procedures, conduct client due diligence, and be able to demonstrate these processes to regulators on request. Appointing a qualified compliance officer is not optional — it is a structural requirement.
Corporate tax registration with the Federal Tax Authority (FTA) is mandatory. UAE corporate tax at 9% applies to taxable income above AED 375,000, and financial services entities are not exempt.
Ongoing reporting to SCA is required once licensed. Failure to comply carries administrative penalties, and repeated non-compliance risks licence suspension. Build the compliance infrastructure before you begin operations, not after.
Free zone entities, including those incorporated at Meydan Free Zone, can hold this activity but must still obtain SCA no-objection or specific approval before conducting regulated promotional activity.
Essential Services for Entrepreneurs and Startups
Explore mCoreStep-by-Step Licence Setup Guide
The process is structured and sequential. Cutting steps creates delays — typically at the SCA stage, where incomplete documentation is the most common cause of rejection.
- Step 1 — Choose your jurisdiction: Mainland (DED) or a recognised free zone. Free zones offer 100% foreign ownership and faster incorporation timelines. Mainland offers broader client reach without geographic restrictions.
- Step 2 — Reserve your trade name and confirm activity: Verify that activity code 7310.97 is approved under your chosen jurisdiction before proceeding.
- Step 3 — Prepare incorporation documents: Passport copies, a business plan, a compliance framework, and a documented AML policy. These must be substantive — not template documents.
- Step 4 — Submit your licence application: File with DED or your free zone authority. Obtain initial approval before moving to the SCA stage.
- Step 5 — Apply to SCA: Submit your application for activity-specific approval or a no-objection certificate for foreign securities promotion. This is the most time-sensitive stage.
- Step 6 — Open a corporate bank account: UAE banks apply enhanced due diligence to financial services entities. Expect a thorough review of your compliance documentation, beneficial ownership structure, and business model.
- Step 7 — Finalise operations: Obtain visa allocations, formally appoint a compliance officer, and register with the FTA for corporate tax purposes.
Free zone incorporation typically completes in 2–4 weeks. SCA approval adds a further 2–6 weeks depending on documentation quality and the complexity of the proposed promotional activities. For broader commercial context on setting up in Dubai, refer to Invest in Dubai.
Free Business Setup Cost Calculator
Calculate NowMainland vs Free Zone: Key Differences
Mainland incorporation through DED allows direct engagement with UAE-resident retail and institutional investors without restrictions on client geography. It is the more flexible structure if your target market includes onshore retail clients.
Free zone entities may face limitations on direct onshore solicitation. Confirm the precise scope of permitted activity with SCA before commencing any client outreach — the consequences of operating outside your approved scope are significant.
Meydan Free Zone offers competitive setup costs, full foreign ownership, and a professional services framework that accommodates financial marketing activities. It is a practical starting point for firms entering the UAE market for the first time.
Commercial Opportunity and Market Context
The UAE hosts over 200 nationalities. That demographic reality translates directly into a large, sophisticated base of internationally mobile professionals who hold cross-border investment portfolios and actively seek exposure to foreign markets.
Dubai's role as a regional financial hub means that GCC-based family offices and institutional allocators are already looking for credible distribution partners for foreign securities products. The demand exists — the constraint for most foreign asset managers is regulatory access, not market appetite.
The Emirates Investment Authority signals continued state-level appetite for international asset exposure, reinforcing the broader investment culture that supports this activity.
Growing regulatory clarity from SCA is reducing barriers for compliant foreign asset managers seeking UAE distribution reach. The framework is maturing, and firms that establish compliant operations now are well-positioned as the market deepens.
According to Mordor Intelligence, the MENA wealth management and securities distribution sector continues to record sustained growth, driven by rising HNWI populations, regional capital market development, and increasing appetite for diversified international portfolios.
Conclusion
A Foreign Securities Promotion licence in Dubai is a focused, professionally structured activity that sits at the regulated end of financial marketing. The SCA framework is non-negotiable, documentation standards are high, and the compliance infrastructure needs to be in place before you promote a single product.
Done correctly, it gives you credible, lawful access to one of the world's most concentrated pools of internationally mobile capital. Done poorly, it exposes you to regulatory action before your business generates a dirham of revenue.
If you are ready to structure your setup correctly from day one, speak with the Meydan Free Zone team to confirm jurisdiction fit, activity scope, and SCA pathway before you commit.
References
- Securities and Commodities Authority (SCA), UAE (sca.gov.ae)
- Federal Tax Authority (FTA) (tax.gov.ae)
- Invest in Dubai (investindubai.gov.ae)
- Emirates Investment Authority (eia.gov.ae)
- Mordor Intelligence (mordorintelligence.com)
