If you’re looking to launch or expand a brokerage business in the Middle East, there’s one name that consistently stands out—ADGM, or the Abu Dhabi Global Market. Situated in the capital of the UAE, ADGM has become a hub for regulated financial services, offering a modern framework based on English common law and overseen by the Financial Services Regulatory Authority (FSRA).
Arguably, the most highly sought-after ADGM license is the Category 3A Financial Services Permission. The license covers investment dealings as a matched principal or as an agent. In other words, this license suits well STP brokers, forex firms, or multi-asset platforms. If you are applying for this license or getting a business that already has it, this article will take you through the basics of what it is, why it matters, and how to get started.
What is Category 3A License?
This is a license that is given to financial firms that deal with investment dealing. More particularly, it covers:
- Dealing as Agent–You act for clients buying or selling investments.
- Dealing as Matched Principal–You are the counterparty in a trade without taking market risk, by matching each buy and sell order.
- Licensed under ADGM for dealing in investments both as agent and matched principal
- Includes appointment-ready compliance, risk, audit, and finance officers
- Ideal M&A target for forex, commodity, or derivatives brokers seeking MENA entry
What Makes ADGM an Optimal Choice?
ADGM is not just “yet another free zone.” What it actually provides is a truly global financial center—with quite a few clear benefits.
- Common law jurisdiction – ADGM is the first financial center in the Middle East to directly adopt English common law.
- International credibility – ADGM and its regulator, FSRA, are pretty much welcomed by the institutional players.
- 100% foreign ownership – One does not require a local sponsor or Emirati partners.
- Zero tax environment – There are no corporate and personal income taxes for a period of 50 years. Fast-track business setup – Company registration and licensing is done within months, not years.
Combined with the UAE’s strategic location between Europe, Africa, and Asia, ADGM has become a preferred destination for financial companies, including fintechs, brokers, asset managers, and advisory firms.
Conditions for the Application
To be able to qualify for the Category 3A license, a company must meet a number of regulatory criteria.
Minimum Capital – The minimum capital base is set at USD 500,000, and this can be enhanced up to about USD 1–2 million, based on the scale of operations and client base (especially in serving retail clients).
Appointed Officers – These would normally include the following:
- Senior Executive Officer: This person must be a resident of the UAE.
- Compliance Officer: This position was created specifically to ensure compliance with the law. MLRO: Money Laundering Reporting Officer; in charge of oversight of AML practices.
- Finance Officer: In charge of financial reporting.
- Risk Officer: Internal risk assessments.
- Some of the positions might be combined, depending on the size and structure of the company.
Regulatory Business Plan – A comprehensive plan that would cover:
- The business model and target clients;
- Products and services;
- Three-year financial projections;
- Governance structure;
Internal controls and compliance framework. Physical Office – Office space located in ADGM to be leased.
Internal Policies – A documented procedure for AML, KYC, conflicts of interest, risk management, complaints handling, data protection, etc., need to be in place.
The documents will then be submitted to FSRA for review.
Approval Time
This is usually around 8 to 12 weeks for the licensing process from submission to approval if all is in order with the documentation at each stage. These include:
- Preliminary meeting with the FSRA
- Filing of the license application
- In-principle approval
- Meeting remaining setup conditions (bank account, office, insurance, capital deposit)
- Final license issuance
FSRA is known for its professionalism and the levels of response, making the process much smoother than in most other jurisdictions.
Acquiring an Existing ADGM 3A Licensed Entity
For businesses that want to start operations immediately, buying an existing ADGM-licensed company is often faster than applying from scratch.
Here’s why:
- Time savings – You skip the 2–3 month approval process.
- Clean history – Most turnkey firms are newly formed and carry no operational baggage.
- Fully staffed – Officers are already appointed and approved.
- Operational setup included – You inherit an office lease, bank account, and internal procedures.
These firms are typically sold by corporate service providers or private sellers and come with FSRA approvals already in place. After the sale, you can change the company name, swap out directors, and align operations to your strategy—subject to FSRA notifications and approval.
Points to Consider
Before acquiring a licensed entity or starting the application, keep in mind:
- Costs – Between capital requirements, officer salaries, rent, and professional fees, operational costs can be substantial.
- Ongoing compliance – ADGM Category 3A Brokerage License firms must submit annual audited financials and regulatory returns.
- Due diligence – When acquiring an existing license, ensure there are no unresolved compliance issues or hidden liabilities.
- License scope – Confirm that the firm’s current permissions match the services you intend to offer.
Who Should Consider This License?
The ADGM Category 3A license is ideal for:
- STP or ECN Forex Brokers
- CFD and Crypto Platforms
- Introducing Brokers and Multi-Asset Dealers
- Tech-driven Fintech Firms expanding into MENA
- Firms looking for a credible, tax-efficient regulatory home
It’s also a strong option for businesses that want to market themselves globally but operate from a well-regarded Middle Eastern jurisdiction.
Final Thoughts
The ADGM Category 3A brokerage license offers a robust regulatory foundation, fast setup timelines, and a respected international jurisdiction. Whether you’re starting from scratch or purchasing a licensed entity, the benefits include a clean legal environment, strong investor confidence, and access to regional and international clients.
For any brokerage firm looking to scale with credibility and flexibility, this license is one of the best tools available today in the Middle East.