MENA Region and Dubai Again on the CFD Radar

Since the old markets of Europe, US, and Australia are saturated, the CFD industry is desperately looking for new directions of growth. One such direction is the Middle East, with Dubai being at the heart of it.

The Middle East, especially the Persian Gulf area, is not a completely new direction where FX/CFD brokers are looking for clients. However, recent years show an increasing interest in this region. Just to give an example, the largest global fintech and trading B2B exhibition in the region, the iFX EXPO Dubai, is experiencing so much growth interest that the venue had to change to a bigger floorplan in 2022, to cater to the growing demand of exhibitors, both local and international.

Also, we see continued growth in the number of companies that open offices in the region or gain licenses. Just to give a few examples in chronological order. In 2014, Saxo Bank opened an office in Dubai. This was actually its second office in Dubai. In 2019, Australian GoMarkets also established a subsidiary in this region, and in 2021 Polish XTB expanded into Dubai as well.

Asked why XTB entered this territory, Achraf Drid, the Managing Director of XTB MENA, told Finance Magnates: “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 Do CFD Business in the Middle East?

There are certain reasons why conducting a CFD brokerage business in the Middle East region is growing in popularity. One characteristic, which has already been mentioned, is the wealth of its citizens. The general macroeconomic data is backed by industry-related metrics, which Finance Magnates Intelligence has access to. In much of our cyclical industry analysis of this region, countries from this region, especially in the case of The United Arab Emirates, have always been high on the agenda when it comes to the core client’s metrics we are about to present.

For example, average deposits sent to the accounts of FX traders, both for single deposits as well as for the total monthly deposits, are always at the top of the ranks.

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