An interesting part of the world, the United Arab Emirates are made up of seven emirates. These are Abu Dhabi (which functions as the regions capital), Ajman, Dubai, Fujairah, Ras al-Khaimah, Sharjah and Umm al-Quwain.
Of the population of over 9.2 million, an amazing 7.8 of these are expats, while the rest are Emiratis. While the Emirates each have their own monarch that serves as ruler, the group of Emirates have a President who is chosen as Federal ruler.
The UAE is strategically located on the Strait of Hormuz, which serves as a passing through point for oil leaving the Middle East. The Emirates are rich in both Crude Oil and gas; they hold the 7th largest supply of crude globally and have the 17th largest gas reserves in the world.
While the Emirates are very developed financially and infrastructurally, it is Dubai which is the main centre of economy for the region. While tourism and other areas of business are practiced here it is nonetheless still the export of oil and gas that keeps the region as one of the most economically healthy in the world.
Doing Business 2017 Report placed the UAE as the 26th best nation in the world for doing business based on its economy and regulatory environment. Dubai whose economy is also derived from non-oil based activity sees regular economic growth. However in 2007-2010 it saw a recession and was eventually bailed out by Abu Dhabi.
Binary options are a fast growing and highly regulated type of financial investment in the UAE which affords this activity a level of security in the eyes of local investors.
Best Binary Options Broker in UAE
Some of the best binary options brokers UAE has to offer are listed below. These are regulated brokers which should afford traders a sense of reassurance when depositing their funds there. Here are our recommended binary options brokers.
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The UAE sees a strong regulatory environment. It is built up from two main regulatory jurisdictions, the Dubai International Financial Centre (DIFC) and the rest of the UAE. The UAE has its own independent regulatory system which is accountable to The Central Bank of Dubai, The Emirates Securities and Commodities Authority (ESCA) and the Ministry of Economy and Planning. Meanwhile Dubai has its own authority to regulate financial services in the area – the DFSA.
The UAE regulator, the Securities and Commodities Authority closely monitors regulation over binary options brokerage firms and clearance houses, which wish to be based out of the region in order to maintain fairness and boost confidence in the local framework.
To acquire authorization to operate in the region, UAE binary brokers must fulfill the following regulatory requirements:
- Show a large amount of capitalization in the local currency
- Verification of equivalent regulation of recognized jurisdictions such as Cyprus and the UK
- Possess a verified operations track record
- Possess qualified staffs with a minimum of 5 years experiences in retail financial products
- Segregate and monitor clients funds
- Possess a system and control for dealing with settlement payouts
- Have risk control measures put into place
In Dubai the DFSA which was founded in 2004, controls the licensing of binary options brokers in the region. It is made of the following threes structures:
- The DFSA creates and monitors the main policies with regards to the targets and future plans of the DIFC.
- The Dubai International Financial Exchange (DIFX) provides investors with a larger financial market with the aim of increased liquidity, this also includes the binary options trading activities.
- The DIFC Registrar allots memberships and authorises any binary options brokers which want to conduct business activities within the DIFC.
- The rest of the Arab Emirates have the Central Bank which monitors investing in the region including binary options trading and then the ESCA follows and tracks specific areas of the security and investment arena.
Deposit Methods Available In UAE
The UAE has a highly advanced financial infrastructure with the ability to conduct deposits through credit cards, debit cards, wire transfers. All UAE Binary options brokers accept leading credit cards including MasterCard, VISA, JCB, Diners and American Express. All local banks offer national and international money transfer services. Deposits to binary options brokers in UAE can also be conducted through electronic wallets or ewallets.
Dubai which is the main financial centre in the Middle East has highly developed money transfer and remittance services available.
Money transfers that take place in the Dubai International Financial Centre and in the UAE are unrestricted but are however subject to anti money laundering procedure. Banks are expected to report any large money transfers to the relevant authorities and starting from 2018 there will be a VAT imposed on money remittances.
Taxpayers that earn money inside the UAE pay very low amounts of tax which is why the area has become somewhat of a haven for taxpayers and explains the huge number of expatriates to Dubai and the UAE in general, not withstanding the human rights charges against the region.
Additionally the UAE has signed tax treaties with many nations to avoid double taxation.
- Is it legal to trade binaries in UAE?
Yes binary options are legal to trade in the UAE. International trade is highly encouraged as the region, which currently sees most of its trade conducted through the oil business is keen to foster investments and business through other sources. Dubai which is the main financial Centre of the United Arab Emirates has a friendly attitude to over the counter trading which includes binary options.
- Are binaries regulated in UAE?
Binary options are seen as financial investment products by the authorizers in both the UAE and its capital Dubai. This means that binary options as a product is highly regulated by the Central Bank and the relevant regulators in both the UAE and Dubai.
- How to trade binaries in UAE?
The authorities are strict on the brokers that operate in the region and instill important policies in terms of best practice with regards to investors. Investors must fulfill certain criteria in order to start trading with local brokers, or those brokers that are regulated inside the region. This means proofing identity, verifying bank details and various other steps in the fight against money laundering through illicit activities.
The entire UAE region is highly financially regulated in order to protect investors’ interests. The Central Bank of Dubai, the DFSA, The Emirates Securities and Commodities Authority (ESCA) and the Ministry of Economy and Planning all work together to ensure that binary options brokers regulated in the region and offering services to local citizens, work with integrity.