The UAE’s financial watchdog has issued a strong warning to residents against dealing with three unlicensed companies involved in unregulated trading schemes that have left numerous investors facing severe financial losses.
In an advisory released on July 17, the Securities and Commodities Authority (SCA) named Sigma-One Capital, Sigma Wealth World Financial, and Sigma One Cap Marketing Services as entities operating without regulatory approval. “The SCA advises the investing public to refrain from dealing with these companies, as they are not licensed to conduct financial activities or provide services regulated by the SCA,” the authority stated. It further emphasized that it “bears no responsibility for any transactions conducted with unlicensed companies.”
The warning follows a series of investigative reports by Khaleej Times that revealed how the firms, operating through fake offices, shell companies, and offshore registrations, duped UAE residents out of millions of dirhams. The operations were tied to Gulf First Commercial Brokers, which was based in Capital Golden Tower in Business Bay. This firm allegedly funneled investors to Sigma-One Capital—an unregulated platform claiming to be registered in St. Lucia—before abruptly vanishing.
Among the many victims were expatriates Mohammad and Fayaz Poyyl, who each lost $75,000. One investor lost $230,000 after being misled by a so-called relationship manager who spoke his native Kannada. Another victim, who lost Dh150,000, said he was ridiculed and abused when he confronted the perpetrators. “They built trust slowly, then flipped overnight,” he said.
According to the Khaleej Times investigation, the firms employed a “B-book” model where brokers profited when clients lost money. Former employees of Sigma Marketing admitted to manipulating trades, delaying executions, and fabricating profits to deceive clients into depositing more funds.
The scam’s reach extended well beyond Dubai. Internal documents and whistleblower accounts pointed to at least seven call centres operating within the emirate, employing hundreds of telesales agents. These agents were incentivized with cash bonuses and commissions, often paid in physical sacks of cash. The fraud network also had offshore links to India’s call centre ecosystem, which has been tied to numerous global financial scams.
The SCA’s announcement is seen as a significant move in acknowledging the growing threat of unregulated trading platforms in the UAE. The authority also warned the public about counterfeit documents bearing the SCA’s logo and urged individuals to verify the legitimacy of financial service providers through its official list of licensed entities.
The regulator’s intervention follows growing calls for stronger enforcement and investor protections amid a rise in sophisticated financial scams targeting residents across the Gulf region.
