A brokerage firm operating in Dubai has reportedly disappeared with millions of UAE investors’ funds, according to reports by local media publications.
According to the Khaleej Times, the firm has left a vacant office in Dubai’s Capital Golden Tower and unanswered calls from desperate investors who have reportedly lost millions of dirhams in funds.
Dubai: Investors lose millions of dirhams as brokerage firm vanishes overnight
Inside suites 302 and 305, Gulf First Commercial Brokers 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 victims were aggressively pushed toward Sigma-One Capital, a supposedly affiliated online 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 and listed a Dubai address in Musalla Tower.
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However, investigations have reportedly found no evidence that the company ever operated from there. It also lacked any authorization from UAE regulators like the DFSA or SCA, leaving investors without legal recourse.
Escalating Losses and Personal Debt
For many, the scam erased savings and left them in deep financial distress. One investor cited by the media outlet used credit cards, loans, and even his wife’s savings in desperate attempts to recover losses.
The Dubai Police have reportedly confirmed that complaints have been filed against both Gulf First Commercial Brokers and Sigma-One Capital. Investors are now calling for stricter regulation to prevent offshore platforms from targeting UAE residents under the guise of local operations.
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 more than illusions: paper companies with no regulation, oversight, or intention of protecting clients. This has left investors chasing shadows in what has become a growing crisis in the UAE’s financial landscape.
According to the report, the scams work according to the same scheme, which gradually encourages the victim to invest more and more funds. 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 increase deposits, coerced into risky transactions, and later their accounts are blocked before the broker disappears.