Contracts for Difference remain one of the most popular trading products in the MENA retail market. Regulatory approaches to CFDs vary significantly across the region, creating both opportunities and compliance challenges for brokers.
DIFC CFD Regulation
The DFSA regulates CFD trading within the DIFC under its leveraged trading framework. Brokers must meet specific capital requirements, implement leverage limits, and provide standardized risk disclosures to retail clients.
ADGM Approach
The FSRA in ADGM has developed its own framework for CFD regulation, broadly aligned with international standards. Leverage limits and negative balance protection requirements mirror European regulations.
Saudi Arabia
CFD trading in Saudi Arabia exists in a regulatory gray area. The CMA has not explicitly prohibited CFDs but has not established a clear licensing framework. Brokers serving Saudi clients typically operate from DIFC or ADGM with cross-border arrangements.
Leverage Limits
MENA regulators have generally adopted leverage limits similar to ESMA standards for retail clients. However, professional client classifications can allow higher leverage. Understanding the criteria for professional client categorization is important for brokers.
Compliance Strategy
We advise CFD brokers on multi-jurisdictional compliance strategies for the MENA market. From license structuring to risk disclosure and client categorization, we ensure brokers operate within regulatory boundaries.