Dubai Resolve Through Regional Turbulence
The decision to open the second Dubai office in March 2025 was a long-term commitment to the region. You subsequently hit regulatory milestones including a CMA license and DFSA license renewal. Then missiles hit. Does the MENA bet still make sense, or are you reassessing?
The decision to open the second Dubai office in March 2025 was a long-term commitment to the region. Establishing an office, alongside hitting regulatory milestones including a CMA license and renewal of the DFSA license, was designed to build a durable, regulated presence in the UAE.
We are committed to the MENA region as it remains one of XTB's core growth markets. In fact, the recent events have reinforced the importance of providing resilient services for our clients, with local leadership and strong regulatory frameworks.
UAE stock markets closed on March 2-3 for the first time in history, yet CFD desks kept running. Did XTB MENA experience any risk management stress events during the crisis, and how did negative balance protection hold up?
The stock market closure on March 2-3 was a well-considered regulatory decision by the UAE CMA to protect market stability. When markets reopened, UAE exchanges also implemented tighter price-limit measures to manage volatility.
Energy and precious metals markets saw significant volatility amid disruptions around the Strait of Hormuz, which our risk management processes are designed to handle.
Regulatory Architecture and the MENA Landscape
Some brokers that fully abandoned their EU licenses to anchor in Dubai now have no regulatory fallback. Is XTB's global multi-license structure now an advantage over competitors who went all-in on the Gulf?
XTB's multi-jurisdictional regulatory structure has always been central to how we operate, and helps keep operations resilient when conditions change. Our accountability to regulators and shareholders spans multiple frameworks simultaneously, and we believe clients benefit from a global footprint.
Our objective is to build a diversified client base across multiple markets, which we believe is the most sustainable way to scale the business.
Why is the MENA retail trader profile so fundamentally different from Europe, and is that growth sustainable?
The MENA region has a larger share of high-deposit clients than its European peers. Trading frequency can also be higher per client. Whether these dynamics are sustainable depends on macro conditions and the continued development of the regulatory and market infrastructure.
Our view is that the structural tailwinds are meaningful, although participation rates can fluctuate materially during stress periods, with more short-term trading during periods of higher volatility.
Saudi Arabia still lacks a clear CFD licensing framework, Egypt is complex, and Iran is off the table. Where is the real untapped market in MENA right now?
The UAE remains structurally advantaged due to regulatory clarity, ecosystem depth, and established frameworks for regulated firms operating under DFSA and CMA oversight. The market could remain a strong growth vector due to its long-term appeal, despite the current challenges.
Regulatory frameworks for CFD products in Saudi Arabia are still evolving, and we will continue to monitor developments on the ground closely as the market remains promising.
Prop Firms, Competition, and the Two-Million Target
Prop trading firms are flooding into MENA with ROAS as high as 12x compared to 3x in the US. Does XTB see prop trading as a competitive threat or a client acquisition channel?
Market dynamics have clearly attracted prop firms and other companies in the financial industry into emerging markets, with particular interest in the GCC, due to client engagement. Prop trading firms and retail CFD brokers serve fundamentally different client needs, and we do not view these as directly competing propositions.
The growth of prop models can be viewed as a demand signal, but it also raises expectations around transparency and risk culture, especially where marketing intensity is high, and some activity sits outside the protections that apply to regulated brokerages.
What would you tell a CEO who is still sitting on the fence about committing to MENA after everything that happened in February 2026?
It's helpful to focus on the fundamentals. The market participation, the progressive regulatory trajectory, and the demographic profile of the client base provide a strong perspective for the region.
These factors remain intact and could continue to improve over the long term. At the same time, the volatility can be viewed as a revenue driver, as traders increase their participation to capture opportunities created by market movements.
XTB's global CEO, Omar Arnaout, has said the company is targeting 2 million annual clients and sees itself as "the Amazon of trading." How does MENA fit into that ambition - is this region a core pillar or still an experiment?
MENA is a core part of XTB's growth strategy. Our investment in local licences and a dedicated office reflects that priority. Over time, the region has the potential to become one of the important contributors to our global client acquisition.
Globally, XTB experienced strong growth in 2025, adding 864,000 clients and bringing its client base to 2.16 million. Last year's figures go in the direction of our 1 million new clients annual target and show XTB's capacity to expand globally. XTB's ambition is built on becoming a global investment app, and in that context, MENA fits naturally into the long-term growth story.