As the UAE continues to position itself as a leading global financial center, firms looking to engage in regulated marketing and promotional activities in the financial services sector must obtain a Category 5 license from the Securities and Commodities Authority (SCA). This specialized license is ideal for entities aiming to promote or market foreign financial products and services to UAE-based clients—without directly providing investment or brokerage services. For example, if your group already has an Australian AFSL authorization, Mauritius Investment Dealer license, Seychelles Securities Dealer license, Cyprus CIF or similar, you may use your SCA authorized company to promote and market the services of the foreign broker, and then direct local customers to this foreign broker.

Zitadelle AG, a leading regulatory consultancy firm, offers end-to-end assistance for firms seeking Category 5 SCA authorization in the UAE. Below, we outline the key aspects of this license and how Zitadelle AG can support your firm through the approval process.

What is the SCA Category 5 License?

The SCA Category 5 license is designed specifically for marketing and promotional activities related to financial services and products. This includes advertising, client referral, and lead generation for offshore brokers, asset managers, and investment firms.

Importantly, firms holding this license are not authorized to offer investment advice, manage portfolios, or execute trades. Instead, they function as regulated promoters within the UAE financial ecosystem.

Key Requirements for Category 5 Authorization

Capital Requirements

Base Capital: AED 500,000 + capital buffer (Ratio applied)

Local Company Incorporation

A UAE company is required, but incorporation can occur alongside the licensing process.

Governance and Staffing

A well-structured local team is crucial to a successful application. The SCA expects firms to appoint a qualified and experienced team, including:

• Senior Executive Officer (SEO or Head of Category) – Must reside in the UAE and have sufficient regulatory experience (at least 5 years in the financial industry and passed SCA examinations).

• Promotions Manager (at least 5 years in the financial industry and passed SCA examinations)

• Compliance Officer (at least 5 years in the financial industry and passed SCA examinations)

• Suggested: Two Directors, including at least one Non-Executive Director

  
  

Be prepared: these candidates are in high demand and in short supply. You may either relocate your own personnel, hire individuals who have not yet passed the required examinations and support them through the process, or be ready to offer salaries ranging from USD 5,000 to 10,000+ per month, depending on experience and qualifications. It is virtually impossible to find qualified candidates below the USD 5,000 threshold.

Zitadelle AG can help source, assess, and onboard qualified local personnel who meet SCA’s competency standards.

Application Timeline

• Estimated Licensing Timeline: ~6 to 12 months depending on whether you have the Key Staff or not,

• This includes document preparation, submission, SCA feedback, interviews, and final approval.

Zitadelle AG ensures that the process is smooth, with strategic guidance at each step to minimize delays and regulatory friction.

Leverage and Activity Restrictions

• No Leverage Restrictions: As the license only covers marketing and promotion, leverage rules applicable to trading do not apply as the company in the UAE itself doesnt provide any order execution.

• No Client-Facing Investment Activity: License holders cannot manage money (take deposits), execute trades, or give investment advice.

This makes it a low-risk, high-potential license for firms aiming to expand their brand presence and client base in the Middle East without operating a full-fledged financial services firm.

Who Can Apply?

Even firms with limited regulatory experience may qualify, provided they hire the right local team and demonstrate strong financial standing. Zitadelle AG works with startups and established institutions alike to meet the SCA’s licensing benchmarks, even for first-time entrants into the UAE market.

N.B. Ultimate beneficial owners will be required to provide a non-criminal record and a credit report from their home country's credit agency (or other as may be applicable) - absence of any negative public entries and a good credit report will play a major role in the approval of the application.

Why Work With Zitadelle AG?

Zitadelle AG has an established track record in SCA licensing advisory, offering:

• Regulatory feasibility assessments

• Corporate structuring and incorporation

• Staffing solutions and local hiring support

• Drafting of business plans and internal policies

• Ongoing compliance and post-licensing support

Whether you’re a fintech company, asset manager, or global broker looking to enter the UAE through a cost-effective and strategic regulatory gateway, SCA Category 5 authorization is your best option at the moment.

Ready to Expand into the UAE?

Contact Zitadelle AG today to schedule a free consultation and discover how your firm can leverage the SCA Category 5 license to legally market and promote financial products in one of the world’s most vibrant financial markets.