Lombard loans in Saudi Arabia.
Private credit against Saudi Arabia-listed shares — pledged, not sold, with ownership retained.
A Lombard loan against Saudi Arabia-listed shares is credit secured by a pledge of equity listed on the Tadawul. The holder pledges the shares as collateral, draws cash against a fraction of their market value, keeps beneficial ownership and dividends subject to structuring, and recovers the position in full on repayment.
- Lombard loans are arranged against shares listed on the Tadawul (Tadawul).
- The pledge is not a sale: ownership, dividends, and the upside stay with the holder.
- Loan-to-value is calibrated to the specific position, funded in SAR or cross-currency.
- Structured under the CMA regime, with disclosure from 5%.
Eligible collateral and venues
Lombard Financing arranges facilities against equity listed on the principal Saudi Arabia venue: Saudi Exchange (Tadawul) (Tadawul). Eligibility at the position level turns on the liquidity and free float of the specific line, its volatility, and the size of the holding relative to its typical traded volume — the same variables that drive the loan-to-value.
Regulator and disclosure
Shares listed in Saudi Arabia are regulated by Capital Market Authority (CMA). Substantial-shareholding disclosure is triggered from 5%, and a pledge over a large line is structured with that reporting regime in view so that the transaction remains discreet and compliant. Where a holding sits near a control or takeover threshold, the structure is arranged to avoid disturbing the position.
Funding, custody, and structuring
Facilities are typically arranged for a tenor of twelve to thirty-six months, funded in SAR or in another currency on a cross-currency basis. Throughout the facility the pledged shares are held by a qualified custodian under bankruptcy-remote arrangements, so the security is clean and the holder’s ownership is preserved. Non-recourse, limited-recourse, and full-recourse structures are available, and the choice interacts with the loan-to-value and the pricing.
| Listing venue(s) | Saudi Exchange (Tadawul) (Tadawul) |
|---|---|
| Regulator | Capital Market Authority (CMA) |
| Currency | SAR (cross-currency available) |
| Disclosure threshold | From 5% substantial-holding disclosure |
| Principal indices | TASI (Tadawul All Share Index), MT30 |
| Indicative tenor | 12–36 months, renewable by agreement |
| Recourse | Non-recourse / limited-recourse / full-recourse |
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Disclosure and regulation
The Capital Market Authority requires a substantial holder to notify at 5% and on each subsequent 1% change, so a large Tadawul position carries a fairly granular reporting trail as it is built. Two features then shape a pledge. First, Sharia compliance sits at the centre of structuring, and the security arrangement is framed to respect it. Second, foreign ownership — opened progressively since 2015 — can carry issuer-level considerations for a non-resident client. A Lombard credit is arranged so the CMA notifications are observed and the client’s disclosed holding, along with any Sharia and foreign-ownership constraints, is preserved.
An illustrative example
Consider a private client holding SAR 150 million in a large-cap Tadawul-listed line. At an illustrative loan-to-value of 40% — within the disclosed 20–65% range — a Lombard facility releases roughly SAR 60 million while the shares stay pledged and the client keeps ownership, dividends, and the upside. Where the mandate requires it, the structure can be arranged on Sharia-compliant lines, and funding taken in SAR or on a cross-currency basis. The figures are round and purely illustrative, shown to convey the mechanics rather than any particular terms.
Illustrative only — not an offer, a quotation, or a commitment to lend.