A brokerage firm operating in Dubai has reportedlydisappeared with millions of UAE investors’ funds, according to reports by localmedia publications.
According to the Khaleej Times, the firm has left a vacantoffice in Dubai’s Capital Golden Tower and unanswered calls from desperateinvestors who have reportedly lost millions of dirhams in funds.
Dubai: Investors lose millions of dirhams as brokerage firm vanishes overnight https://t.co/7L0GY8UW2l
— Khaleej Times (@khaleejtimes) May 20, 2025
Inside suites 302 and 305, Gulf First CommercialBrokers reportedly operated a high-pressure sales floor until last month,targeting UAE-based investors with cold calls promoting forex investments.
Clients Tricked Through Cold Calls
Sources cited by the media publication say that victimswere aggressively pushed toward Sigma-One Capital, a supposedly affiliatedonline trading platform that promised safe returns.
Sources maintain that Gulf First and Sigma-One operated under the same roof, and staff used the names interchangeably. Sigma-One Capital claimed to be based in St. Lucia andlisted a Dubai address in Musalla Tower.
Read more: 82% of FX Brokers Anticipate Higher Volumes, 51% Highlight AI as Key Driver
However, investigations have reportedly foundno evidence that the company ever operated from there. It also lacked any authorization from UAE regulatorslike the DFSA or SCA, leaving investors without legal recourse.
Escalating Losses and Personal Debt
For many, the scam erased savings and leftthem in deep financial distress. One investor cited by the media outlet used credit cards, loans, andeven his wife’s savings in desperate attempts to recover losses.
The Dubai Police have reportedly confirmed thatcomplaints have been filed against both Gulf First Commercial Brokers andSigma-One Capital. Investors are now calling for stricter regulation to preventoffshore platforms from targeting UAE residents under the guise of localoperations.
Ghost Brokers in Dubai
A recent report by ru.financemagnates.com, citing an investigation from the Khaleej Times, showed that the UAE’s often considered convenient regulatory environment is attracting rogue players in the online trading space.
Behind closed doors, many of these firms are nothing morethan illusions: paper companies with no regulation, oversight, or intention of protecting clients. This has left investors chasing shadows inwhat has become a growing crisis in the UAE’s financial landscape.
According to the report, the scams work according to thesame scheme, which gradually encourages the victim to invest more and morefunds. It involves a friendly call with financial jargon, a small down payment”for testing”, demonstration of easy withdrawal of small amounts.
Subsequently, the unsuspecting users are pressured to increasedeposits, coerced into risky transactions, and later their accounts are blockedbefore the broker disappears.
This article was written by Jared Kirui at www.financemagnates.com.
