Pepperstone, an Australian foreign exchange broker, is looking to expand its operations and establish a presence in the financial center of Dubai. The company has already incorporated its subsidiary, Pepperstone Financial Services Limited, at the Dubai International Financial Center (DIFC). All that remains is for the Dubai Financial Services Authority (DFSA) to grant a license to this new branch of Pepperstone. 

Founded in 2010, Pepperstone currently bases its main headquarters in Melbourne, Australia. Setting up a satellite office in Dubai is a natural step for the brokers, a step that has long been on the radar of Pepperstone executives. Pepperstone were exploring a Dubai move in early 2018, alongside the likes of major firms like CMC Markets and LCG. CMC Markets have since grown their Dubai operation, with the hire of Ahmed Soliman as Senior Relationship Manager earlier this year having the express purpose of boosting CMC’s presence in UAE’s business capital.

Pepperstone’s move will allow them to make up ground on competitors that have already settled in Dubai and gain ground on those that are yet to do so. The broker is hoping to secure office space in the illustrious location of Index Tower, placing Pepperstone right in Dubai's business hub. The global business allure of Dubai has continually developed in recent years, while the gateway that it provides to other Middle Eastern markets is extremely attractive for foreign investors and brokers. 

Part of the growth of Dubai’s financial sector has been driven by a change in stance from the DFSA. Previously, it was incredibly difficult for retail brokers to establish a presence in Dubai without being backed by significant capital. The DFSA has since softened its position, although the authority of course still maintains a number of regulations. . The reason for the authority’s change of heart  was a desire to offer forex trading for customers both in and out of the DIFC.

That move has encouraged a far greater number of European and Australian retail brokers to set up operations in Dubai. HF Markets is another forex broker that has opened up offices in the city in 2019, with the global conglomerate now using office space within Index Tower. If all goes well with licensing, Pepperstone will be HF Markets' new neighbors within the building.

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The presence of Pepperstone in the Index Tower will be mutually beneficial for both the broker and the business center of Dubai. For Pepperstone, a consolidated presence in the Middle East increases the company’s exposure, allows it to diversify its position on European markets, and provides access to new clients across the Gulf Cooperation Council (GCC) states.

For the UAE, as well as the wider GCC, the presence of new multinational businesses creates a new source of revenue, a source that is particularly welcome at a time where the GCC is looking to move economies away from a dependence on oil. The DFSA will not simply hand out licenses, as companies need to comply with strict guidelines on banking procedure and risk management. However, Pepperstone will be confident that their track record in Australia and beyond will be instrumental to the approval of that crucial DFSA license.