Brokers Competition – Market Scramble In the Middle East

In a span of 10 years, Europe, the US, and Australia were the hotspots for traders. All forms of trading tactics and the demand for professionals were a bunch in the region. However, the norm of business and consistency in establishing new trading platforms has led to the change of tune.

Recently, the trading platforms are drawing their plan toward the Middle East. High competitions among the entities and the need for growth have catalyzed the move.

In addition, proximity to Asia, robust network connectivity to established markets, and a conveyor belt of new financial opportunities has also been a factor.

Some of the established platforms in the area include iFX EXPO Dubai, which surpassed the growth expected in the region and led to its transfer of offices in 2022.

Several companies received approvals to acquire licenses whereas some are already in operation in the region. An example of the few interactive brokers present includes Saxo Bank, XTB, and eToro.. Among others.

Achraf Drid, the Managing Director of XTB MENA, responded on why the Middle East and said: “The MENA is an attractive region, with 19 countries that make up 578 million of the world’s population. UAE has joined the group of top financial hubs globally and was ranked the most attractive financial center in the MENA region. The Middle East also seems to have a very positive future regarding fintech, which supports our business goal to provide the highest quality solutions and technological support for our customers. This is amongst many reasons why we decided to launch an office in the MENA region that plays a strategically important role in the company’s overall global growth strategy.”

 

Why the Middle East Attention?

One of the reasons we see an influx of operators, builders, entrepreneurs, and developers coming into Abu Dhabi and Dubai is because there is a sense of greater regulatory clarity at ADGM, in Dubai, and at a federal level.

Binance, the world’s largest crypto exchange by trading volume, is among those eying a bigger presence in the Middle East.

But while the Emirates might be winning over some of the world’s largest crypto companies, it’s also coming under increasing international scrutiny for relaxing in tracing dirt money flows.

In addition, some crypto firms in the UAE have been requested to liquidate billions of dollars of virtual currency, as Russians seek a haven for their fortunes.

In the past few months, the world’s main anti-money laundering watchdog, the Financial Action Task Force, also placed the UAE on its gray list of countries that need extra monitoring.