Understanding Brokerage Regulations in the UAE: A Sector-by-Sector Overview


In the UAE, brokerage activities are governed by various laws depending on the industry, such as real estate, financial markets, and commercial transactions. Here is an overview of key brokerage laws in different sectors:

1. Real Estate Brokerage

Real estate brokerage in the UAE, particularly in Dubai, is regulated by the Real Estate Regulatory Agency (RERA), which is a part of the Dubai Land Department (DLD).

  • Real Estate Brokerage Law (Law No. 85 of 2006):
  • Brokers must be registered and licensed by RERA.
  • Brokers must have a valid real estate broker card.
  • Brokerage agreements must be in writing and specify the terms, commission rates, and responsibilities of both parties.
  • Commissions are negotiable, but they are usually around 2% of the transaction value.
  • A broker cannot claim commission unless the transaction is completed.

In Abu Dhabi, real estate brokers are regulated by the Department of Municipalities and Transport (DMT).

2. Financial Brokerage

Financial brokerage in the UAE is regulated by:

  • Securities and Commodities Authority (SCA)
  • Dubai Financial Market (DFM)
  • Abu Dhabi Securities Exchange (ADX)

Key regulations:

  • Brokerage firms must be licensed by the SCA.
  • Brokers must comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.
  • Brokers are subject to strict rules on transparency, fair trading, and investor protection.
  • SCA Decision No. 27 of 2014 regulates the licensing of brokerage companies and their operations.

Brokers are required to:

  • Hold client funds in segregated accounts.
  • Provide accurate and timely market information.
  • Act in the best interests of their clients and avoid conflicts of interest.

3. Commercial Brokerage

The UAE Civil Code (Federal Law No. 5 of 1985) regulates commercial brokerage across various sectors:

  • A broker must act with honesty and transparency in facilitating transactions between parties.
  • A brokerage contract may be oral or written but must clearly state the broker’s commission.
  • The broker is entitled to a commission upon the successful completion of the transaction unless the parties agree otherwise.
  • Brokers are liable for any losses or damages caused by their negligence.

Agency Law (Federal Law No. 18 of 1981) also applies to certain types of brokerage activities involving agency representation.

4. Insurance Brokerage

The insurance industry is regulated by the UAE Insurance Authority (now part of the Central Bank of the UAE since 2020). Insurance brokers must:

  • Be licensed by the Insurance Authority (or Central Bank of the UAE).
  • Comply with the rules set by the UAE Insurance Law (Federal Law No. 6 of 2007).
  • Follow ethical practices in advising clients and processing insurance transactions.


Each of these sectors has its specific requirements and regulations that must be followed to operate legally. If you are planning to engage in brokerage in a particular field, ensuring compliance with the relevant governing body is essential. The information provided by Darwish Legal Consultants is for general informational purposes only and does not constitute legal advice or create an attorney-client relationship. While we strive to ensure accuracy, we make no warranties regarding the completeness or reliability of the information. We are not liable for any damages arising from the use or reliance on the information provided. Communication through our website or email is not secure; please use direct, secure channels for confidential matters.

Mohamed Darwish Founder of Darwish Legal Consultants Hospitality Lawyer | Mediator | Host of The Legal Lobby Podcast