DFSA prudential category
DFSA Category 4
Corporate finance advisers, insurance brokers and arrangers
In short
Category 4 carries base capital of US$10,000 and an expenditure based capital minimum of 6 weeks of annual audited expenditure. A firm holds whichever is higher. The lightest category. The firm neither holds client assets nor deals as principal, so the expenditure based requirement is what usually sets the capital number.
- Base capital
- US$10,000
- Expenditure test
- 6 weeks
- Regulator
- Dubai Financial Services Authority
- Entity form
- Private Company limited by shares
Permitted activities
- Advising on Financial Products
- Arranging Deals in Investments
- Insurance Intermediation
- Insurance Management
- Operating an Alternative Trading System
- Providing Fund Administration
- Acting as Trustee of a Fund where not Category 3B
How the capital works in practice
Base capital of US$10,000 is the floor, not the target. The expenditure based capital minimum takes annual audited expenditure, deducts permitted exclusions, divides by 52 and multiplies by 6 weeks. Whichever number is higher is the requirement, and it has to be met continuously rather than at year end.
For a firm in this category with a meaningful cost base, the expenditure test frequently produces the larger figure. Model both across a three year plan including a downside case, because the DFSA will do exactly that during review and will ask what happens if revenue underperforms.
What the DFSA will want to see
A Regulatory Business Plan describing the operating model rather than the market opportunity. A compliance framework mapped to the applicable Rulebook modules. An AML policy addressing both the DFSA AML Module and the federal regime. And named individuals for the Senior Executive Officer, Compliance Officer, Money Laundering Reporting Officer and Finance Officer functions, all of whom the regulator approves personally.
Confirm before you budget
Capital requirements and fees are set by the DFSA and change. Figures here were reviewed in September 2026 and are a planning aid. Confirm the current position against the DFSA Rulebook before committing capital.Not sure which DIFC licence you need?
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