1. FOREX LICENSE IN DUBAI
MOHD. RAHIL HASAN
Business consultant
rahil.hasan@adamglobal.com

2. TOPICS
 OVERVIEW- FOREIGN EXCHANGE
 TYPES OF LICENSES AVAILABLE IN DUBAI
 DOCUMENTS REQUIRED
 CONDITIONS APPLICABLE FOR FOREX LICENSE
 RESTRICTIONS AND VARIATIONS FOR LICENSE
 OBLIGATIONS FOR THE LCENSE HOLDERS
 QUESTIONS AND ANSWERS

3. OVERVIEW- FOREIGN EXCHANGE
FOREIGN EXCHANGE IS THE EXCHANGE OF THE
CURRENCY OF ONE COUNTRY FOR THE CURRENCY OF
ANOTHER COUNTRY.

4. TYPES OF LICENSES AVAILABLE IN DUBAI
• REMITTANCE OF LOCAL AND FOREIGN CURRENCIES
• FOREIGN MARKETS COMMODITY CONTRACTS
BROKERAGE
• FOREIGN SHARES AND BOND BROKERS
• FOREIGN SECURITIES PROMOTIONS

5. DOCUMENTS REQUIRED
 APPLICANTS NAME, ADDRESS WITH CV AND FULL EXPERIENCE
DETAILS
 PASSPORT AND UAE ID COPY OF ALL PARTNERS
 FAMILY BOOK COPY OF LOCAL PARTNER
 A STATEMENT SETTING OUT THE NATURE AND SCALE OF THE
EXCHANGE BUSINESS
 FUTURE DEVELOPMENT PLAN
 PARTICULARS OF APPLICANT’S ARRANGEMENT FOR MANAGEMENT OF
BUSINESS
 UNDERTAKING TO PROVIDE BANK GUARANTEE IN FAVOR OF CENTRAL
BANK BY A BANK LICENSED IN UAE
 UNDERTAKING TO COMPLY WITH PROVISIONS OF UNION LAW NO 10 OF
1980
 UNDERTAKING TO RENDER THESE DOCUMENTS AND RECORDS
ACCESSIBLE TO THE CENTRAL BANKS SUPERVISORS AND EXAMINERS

6. CONDITIONS APPLICABLE FOR FOREX LICENSE
 LOCAL PARTNER MUST NOT BE LESS THAN 21 YEARS OF AGE
 SHARE OF UAE NATIONAL SHALL NOT BE LESS THAN 60% OF PAID UP
CAPITAL
 THE COMPANY SHALL NOT TRANSFER OWNERSHIP OF THE LICENSE,
FOR REMUNERATION OR OTHERWISE, TO ANY OTHER PARTY
 A LICENSED PERSON SHALL EXERCISE DIRECT OVERSIGHT OF THE
BUSINESS OF THE ESTABLISHMENT,
 NO LICENSE SHALL BE GRANTED UNLESS THE APPLICANT DISPOSES OF
THE NECESSARY PERSONAL RELIABILITY AND PROFESSIONAL
QUALIFICATIONS AS DETERMINED BY THE CENTRAL BANK
A FOREX LICENSE SHALL NOT BE GRANTED UNLESS THE FOLLOWING
CRITERIA ARE FULFILLED

7. CONDITIONS APPLICABLE FOR FOREX LICENSE
 PAID UP CAPITAL SHALL NOT BE LESS THAN AED 2,000,000 (DIRHAMS TWO
MILLION) FOR CARRYING ON PURCHASE, SALE AND EXCHANGE OF FOREIGN
CURRENCIES IN THE FORM OF BANK NOTE, COINS AND TRAVELERS CHEQUES
 PAID UP CAPITAL SHALL NOT BE LESS THAN AED 5,000,000 (DIRHAMS FIVE
MILLION) FOR CARRYING ON REMITTANCE BUSINESS WITHIN AND OUTSIDE
THE UAE IN ADDITION TO SALE AND PURCHASE OF FOREIGN CURRENCIES AND
TRAVELERS CHEQUES
 PAID UP CAPITAL SHALL NOT BE LESS THAN AED 10,000,000 (DIRHAMS TEN
MILLION) FOR CARRYING ON PAYMENT OF WAGES THROUGH CONNECTING TO
THE CENTRAL BANK’S SYSTEM IN ADDITION TO REMITTANCE BUSINESS AND
SALE/PURCHASE OF FOREIGN CURRENCIES AND TRAVELERS CHEQUES
 PAID UP CAPITAL SHALL NOT BE LESS THAN AED 50,000,000 (DIRHAMS FIFTY
MILLION) IF THE APPLICANT IS THE LIMITED LIABILITY COMPANY (LLC)
REGARDLESS OF ACTIVITY. THE PAID UP CAPITAL SHALL BE INCREASED BY 10%
FOR OPENING EACH ADDITIONAL BRANCH.
CONDITIONS FOR PAID UP CAPITAL

8. RESTRICTIONS AND VARIATIONS FOR LICENSE
• IT APPEARS TO THE CENTRAL BANK THAT THERE IS A BREACH OF ANY OF THE
OBLIGATION OR IF ANY CONDITION OF THE LICENSE IS NOT COMPILED WITH
• THE CENTRAL BANK HAS BEEN PROVIDED WITH FALSE, MISLEADING OR
INACCURATE INFORMATION
• THE INTEREST OF CUSTOMERS ARE IN ANY WAY THREATENED
• AN ORDER FOR THE LIQUIDATION OF THE BUSINESS HAS BEEN MADE BY A
JUDICIAL AUTHORITY
• A BANKRUPTCY ORDER OR JUDGEMENT HAS BEEN MADE IN RESPECT OF THE
LICENSED PERSON
• THE COMPANY DID NOT COMMENCE ITS EXCHANGE BUSINESS WITHIN SIX
MONTHS FROM THE DATE OF LICENSE
• THE COMPANY SUSPENDS ITS ACTIVITIES FOR A PERIOD OF THREE
CONSECUTIVE MONTHS.
• THE COMPANY, IN THE OPINION OF THE CENTRAL BANK IS UNABLE TO PAY ITS
DEBTS AS THEY FALL DUE OR IF THE VALUE OF ITS ASSETS IS LESS THAN THE
AMOUNT OF LIABILITIES
THE CENTRAL BANK HAS THE RIGHT TO REVOKE (CANCEL) THE LICENSE IF

9. OBLIGATIONS FOR THE LICENSE HOLDER
• THE CAPITAL SHALL NOT AT ANY TIME BE LESS THAN THE LIMIT APPROVED
• THE MANAGEMENT OF THE COMPANY SHALL BE CONDUCTED BY SUCH PERSONS
AS HAVE BEEN PREVIOUSLY APPROVED BY THE CENTRAL BANK
• THE COMPANY SHALL NOT MERGE OR AMALGAMATE OR ENTER INTO JOINT
VENTURE WITH ANY PERSONAL ENTITY WITHOUT THE PRIOR APPROVAL O
CENTRAL BANK
• EXCHANGE BUSINESS SHALL ONLY BE CONDUCTED BY PREMISES APPROVED BY
CENTRAL BANK
• NO OTHER NON-EXCHANGE ACTIVITY SHALL BE UNDERTAKEN IN THE SAME
PREMISES
• THE TRADE NAME OF THE COMPANY SHALL NOT INCLUDE THE WORD “BANK”
“FINANCIAL INSTITUTIONS”
• THE COMPANY SHALL PROVIDE UPON THE CENTRAL BANK REQUEST, ALL DATA
INFORMATION OR STATISTICS AT ANY TIME OR FOR ANY SPECIFIED PERIOD.
• THE COMPANY SHALL OBTAIN THE NECESSARY LOCAL LICENSES AND COMMENCE
ITS ACTIVITIES WITHIN SIX MONTHS OF THE DATE OF ISSUANCE OF THE LICENSE
BY THE CENTRAL BANK
THE COMPANY SHALL FULLY ABIDE BY THE FOLLOWING OBLIGATIONS:

10. OBLIGATIONS FOR THE LICENSE HOLDER
• CENTRAL BANK SHALL BE PROVIDED WITH THE COPY OF LOCAL LICENSE ISSUED BY
THE LOCAL AUTHORITIES.
• THE APPLICATION FOR THE RENEWAL OF LICENSE SHALL BE MADE WITHIN A
PERIOD OF NOT LESS THAN TWO MONTHS BEFORE THE EXPIRY OF LICENSE.
THE COMPANY SHALL FULLY ABIDE BY THE FOLLOWING OBLIGATIONS:

11. THANK YOU
Mohd. Rahil Hasan
Business Consultant
Rahil.hasan@agamglobal.com/00971-567801391