Dubai 2025: what’s next for the region

Author: Ivan Egorov

Last week, the TFB team participated in the first iFX Expo of the year, which was hosted in Dubai.

Based on our observations and those of the other participants, this was the biggest iFX Expo yet and one of the most successful ones in Dubai. Last year, we discussed Cyprus’s loss of global control over the Forex industry, and it is now evident that Dubai will take over shortly.

• The government fully supports financial sector growth and has introduced well-defined rules and regulations.
• An unprecedented number of investor accounts are being opened.
• More companies are launching offices in Dubai, including Tools for Brokers.
• The traded value jumped by 5% just in Q1 2024 in the financial market.

What we are witnessing right now is truly an unprecedented shift in the trading industry. It is exciting and intriguing to see what a government can do when it has a vision and abundant resources to execute it.

While nobody can truly predict the future, we are betting that Dubai will host even more brokerages, hedge funds, and other financial institutions, creating a prosperous environment for growth.

It is also interesting that Dubai is not going down the free-for-all route. Yes, it welcomes new businesses and the investment jobs they bring in. Yet, the emirate is introducing smart regulations that ensure its market is filled with reputable, sustainable companies that add value.

Key takeaways from the latest iFX Dubai Expo

Although the iFX Expo only lasted three days, we had many insightful conversations with partners and clients and learned about the latest trends, struggles, and demands.

Risk management and PAMM

Risk management and PAMM solutions are the two most sought-after tools right now. Practically everyone we talked to was interested in one or both of them. While risk management is clearly an ever-green requirement for all brokerages, hedge funds, and prop trading companies, the sudden spike in PAMM popularity, which started at the end of 2024, is still going strong. With more traders willing to outsource the task to someone with more experience and a growing number of seasoned traders looking to make extra income with their skills and talents, PAMM solutions are just what the market needs.

Copy trading

Similar to PAMM solutions, there is a growing demand for Copy Trading tools. Many people are looking for something simple that allows them to copy others' trading patterns.

Automation

Automation is another hot topic companies are exploring to lower their daily management costs and reduce risks. Among the automation solutions we’ve discussed, the absolute leader is the Swap Free Solution. The application automatically deposits and withdraws handling fees, changes those fees according to predefined settings, and allows separate rules for logins, symbols, and group masks, saving time and energy for both small and large brokerages.

Overall, automation is a powerful instrument that helps withstand volatility, unpredictable market events, and many other changes that are common in the industry. Many successful brokerages mention this when sharing their journey, and we always encourage our clients to look further into what can be automated in their workflow.

License processing is taking time

Through conversations with aspiring brokers, we also discovered that processing their license applications is taking much longer than they anticipated.

It is a lengthy process, especially if you’re targeting more advanced and regulated markets, but it appears that it is taking longer than expected. Given all the turmoil that’s been happening to the industry over the past couple of years, it seems like regulating bodies and vendors are more cautious now with who they let in, resulting in a lengthy vetting process. While it ultimately slows growth and can even force some potential brokers to back out, we see it as a positive trend contributing to the market being a safer space for everyone.

Not everyone is against AI bots

Interestingly, our last observation concerns AI trading bots, and it’s not what you’d expect. Although most brokerages oppose this new instrument, some welcome AI bots and encourage traders to use them.

The justification is that they’re using them to gain a competitive advantage. While most ban such bots, some allow them, which attracts more traders to the brokerage and brings them higher volumes and commissions. Whether this is a viable business model will be determined in time.