Kuwait’s NCM Clinches Category 1 License for UAE Expansion

BySamson Ononeme

Jan 18, 2024 , , ,
Dubai state-fund owned Eshraq Investments' portfolio firm NCM clinched Category 1 UAE license enabling it to launch regulated expansion.

Key Insights

  • Kuwait’s NCM Investment secured regulatory approval for UAE operations after getting a Category 1 license from the SCA.
  • NCM said the license enables launching of regulated brokerage activities in the UAE.
  • The firm described it as a milestone in its growth strategy focused on expanding in the Middle East and globally.

DUBAI, (MarketsXplora) Kuwait-based online trading firm NCM Investment said on Monday it has received regulatory approval to launch brokerage operations in the United Arab Emirates after securing a Category 1 license from the UAE Securities and Commodities Authority (SCA).

NCM, a major holding of Dubai’s Eshraq Investments’ Goldilocks Fund, described the license as a milestone in its expansion strategy across the Middle East and a pivot point to accelerate its global growth aspirations.

The company already operates in Kuwait, Jordan, Turkey and Malaysia. The SCA green light will enable NCM to set up an office in Dubai and widen access to markets for retail and institutional investors in the UAE.

The granting of our SCA Category 1 license…marks NCM’s expansion into the UAE, and the opening of our new offices in Dubai, are a testament to our commitment to the region, said Naser Al Marri, NCM co-founder.

The firm said its founder-led management team has long worked closely with regulators as part of its culture and track record of driving international expansion.

NCM offers contracts-for-difference (CFDs), financial derivatives allowing exposure to markets without owning the underlying asset.

Read also! NCM Financial obtains FCA license for its UK subsidiary

Eshraq bought a 51% stake in NCM last year via its Goldilocks Fund, which targets undervalued high-growth companies in the Gulf region. The fund’s manager said NCM’s young management profile and regional clout were attractions.

NCM Chief Executive Khurram Sayeed said the license “is aligned with our focus on expanding investment horizons and delivering exceptional client services.”

The UAE has seen rapid growth in foreign brokerages and financial technology firms partnering with local sponsors to set up operations, particularly in Dubai, as the Gulf state bids to build up capital markets activity and investment flows.

Samson Ononeme

Meet Samson Ononeme, a dynamic writer, editor, and CEO of marketsxplora.com. With a passion for words and a sharp business acumen, he captivates readers with captivating storytelling and delivers insightful market analysis.

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