eToro, the social trading platform, has received In-Principle Approval from the Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM). The expected subsequent approval for a full licence will enable the multinational broker to operate as a securities, derivatives and cryptocurrency broker in the United Arab Emirates capital.
eToro, founded in Tel Aviv in 2007, will become the latest big-name broker looking to expand its presence in the Middle East via an ADGM licence. In the last couple of years, the ADGM licence has been granted to AvaTrader and Exinity, amongst others, as retail brokers have headed towards the largest regulated jurisdiction of virtual assets in the MENA region.
Since the ADGM was introduced in 2018, the UAE has established a flourishing fintech scene and become a strong financial centre in the MENA region. Locally, FX/CFD trading is vibrant and is of a higher net worth than most regions. According to cPattern data, the average monthly deposit in the UAE in 2021 stood at $12,685 whilst an average FTD (First Time Deposit) in 2021 was $2.2295, comfortably higher than other regions.
Arvind Ramamurthy, the Chief of Markets at ADGM, said, of the eToro in-principal approval: “We are excited to support them as they work towards establishing their foothold and presence in Abu Dhabi, the capital of the UAE. ADGM is the largest regulated jurisdiction of virtual assets in the MENA region and eToro’s participation will add to its vibrant and trusted ecosystem of virtual asset trading venues, global exchanges and service providers."
eToro Middle East Expansion
The Israeli broker recently announced its plans to acquire fintech startup Gatsby, a commission-free options and stock trading company, and today's news indicates another significant expansion for eToro in an increasingly active market.
Jason Hughes, Senior Executive Officer, UAE at eToro called it "an important milestone for eToro". He added: "We look forward to working with the ADGM to obtain our full licence, and, in turn, expanding our services to investors in the UAE and further afield. We recently opened our office in Abu Dhabi to support this expansion and are looking forward to growing the team locally.”
