Establishing a Money Services Provider in Dubai in 2025
Dubai stands as a global hub for business and innovation, driven by its flourishing financial sector. At the heart of this ecosystem lies the Dubai International Financial Centre (DIFC), recognized among the top onshore financial centers worldwide. DIFC offers a robust, well-regulated infrastructure for firms to carry out financial services activities seamlessly. Oversight within the DIFC falls under the Dubai Financial Services Authority (DFSA), an independent regulator committed to maintaining a stable, transparent environment aligned with international best practices.
For Money Services Providers (MSP) operating outside the DIFC, regulatory oversight shifts to the Central Bank of the UAE (CBUAE). The Central Bank plays a crucial role in safeguarding economic stability and combating financial crimes across the broader UAE landscape. As a result, businesses in Dubai that provide money services must ensure they are registered and comply with the regulatory frameworks set by either the DFSA (within the DIFC) or the CBUAE (outside the DIFC), depending on their operational base.
Within the next sections, the SALVUS Payment Services Licensing team sheds light into the DFSA’s requirements for obtaining an MSP license, exploring the different categories. The article is divided in the following sections:
1. Why establish an MSP in Dubai?
2. MSP License Categories & Features
3. Main Principles of MSP
4. How SALVUS can support your MSP application?
1. Why establish a Money Services Provider in Dubai?
Dubai continues to cement its reputation as one of the rapidly growing and most sophisticated Financial Technology hubs worldwide, fostering innovation and bolstering market credibility. The DFSA, recognized as the region’s leading financial regulator, provides a robust framework that gives investors the assurance to venture confidently into emerging sectors. Its legal and regulatory structures are modeled on those of premier global financial centers, ensuring a secure and stable environment for business operations.
One of the major draws for firms establishing themselves in Dubai is its highly favorable tax regime. Companies benefit from zero personal and corporate income tax for an extended period of forty years. Furthermore, the UAE has secured numerous double taxation agreements with a wide range of countries, including many within the European Union, making it an attractive jurisdiction for global investors.
Operating under its distinct legal environment, the DIFC adheres to English Common Law principles, supplemented by its own civil and commercial regulations. DIFC entities also benefit from liberal policies such as no restrictions on the movement of foreign talent, full repatriation of capital, and no currency exchange controls for branch offices or subsidiaries operating within the center.
Strategically positioned, Dubai serves as a central gateway for FinTech investment across the Middle East, Africa, and South Asia (MEASA) region. With strong economic linkages to major global markets—including the United States, China, and the European Union—businesses in Dubai gain access to influential economic policies and trends, further enhancing their global reach.
2. MSP License Categories & Features
While MSP entities that are operating within the DIFC Free Zone fall under the regulatory scope of the DFSA, their activities are classified by the DFSA into specific licensing categories, namely:
- Category 3C License,
- Category 3D License, and
- Category 4 License.
Each license category defines the permissible services and corresponding regulatory obligations for MSP entity. The following table outlines the key features and requirements associated with each category:
| Features | Category 3C | Category 3D | Category 4 |
|---|---|---|---|
| Services | - Issuing Stored Value | - Providing or Operating a Payment Account, - Executing Payment Transactions, or - Issuing Payment Instruments | - Arranging or Advising on Money Services, - Providing Money Transmission Services |
| Minimum Regulatory Capital Requirements | From 500,000 USD, depending on the combination of services to be offered. | From 200,000 USD, depending on the nature, quantum of business and annual expenditure. | From 30,000 USD, depending on the combination of services to be offered. |
| Licensing Timeframe | approx. 12 months | approx. 12 months | approx. 8 months |
Contact us via email at info@salvusfunds.com if you are interested in obtaining an MSP license with DFSA in DIFC or if you would like more information about UAE licensing; our Payment Services Licensing team is ready to answer your questions.
3. Main Principles of MSP
Under the DFSA framework, all Authorised Firms, including Money Services Providers (MSPs), are required to adhere to a set of 12 core principles designed to uphold the integrity and stability of the financial sector. These principles encompass key areas such as maintaining high standards of integrity and fair dealing, acting with due skill, care, and diligence, and managing business affairs responsibly with adequate systems and controls in place. Firms must also demonstrate that they possess sufficient resources to conduct their operations effectively, observe proper market conduct, and prioritize the interests of their customers through clear, honest communication.
Additionally, they are expected to manage or disclose conflicts of interest, ensure the suitability of advice and decisions provided to clients, and implement appropriate safeguards for client assets and funds. The principles further require firms to engage cooperatively with the DFSA, promptly notifying them of significant developments, maintain robust corporate governance structures, and ensure their remuneration strategies align with the firm’s long-term interests.
Overall, compliance with these principles fosters a fair, transparent, and resilient financial environment, safeguarding client interests and supporting the broader stability of Dubai’s financial system.
4. How SALVUS can support your MSP application?
The Payment Services Licensing team at SALVUS comprises industry-leading professionals with extensive expertise, ready to guide you through every stage of securing your Money Services Provider license with the DFSA and DIFC.
Our team adopts a structured, project-based approach, starting with the design of a tailored portfolio of money services aligned with your business model and strategic goals. We collaborate closely with you and your internal teams to ensure the submission of a comprehensive, well-documented application, managing all communications with the regulator on your behalf.
With a deep understanding of Dubai’s financial regulatory landscape and significant hands-on experience, we are well-positioned to deliver a thoroughly prepared application that meets all DFSA and DIFC requirements, facilitating a smooth and successful launch of your operations. This makes SALVUS a trusted partner for firms aiming to navigate the regulatory process with confidence and precision.
Contact us at info@salvusfunds.com if you are interested in licensing an MSP under DIFC and DFSA in Dubai; our Payment Services Licensing team is ready to help you.
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The information provided in this article is for general information purposes only. You should always seek professional advice suitable to your needs.