Lombard loans on Tadawul.
Private, securities-backed credit against Saudi Exchange-listed shares — pledged, not sold.
A Lombard loan against Tadawul-listed shares is credit secured by a pledge of equity listed on the Saudi Exchange (Tadawul). The holder pledges the shares, draws cash against a fraction of their market value, retains ownership and dividends subject to structuring, and recovers the position on repayment. In plainer terms it is a share-backed loan: a loan against shares, not a disposal of them.
- Facilities are arranged against equity listed on the Saudi Exchange (Tadawul), Riyadh.
- The pledge preserves ownership, dividends, and the upside for the holder.
- Loan-to-value is set per line; funded in SAR or cross-currency.
- Structured under the CMA regime, with disclosure at 5%.
The venue
The Saudi Exchange (Tadawul) is the largest equity venue in the Middle East and one of the largest emerging-market venues globally. Foreign ownership opened progressively from 2015; the Saudi Aramco listing remains the largest IPO in history. Sharia compliance considerations are central to position-level structuring.
Regulator and disclosure
The Saudi Exchange (Tadawul) operates under the Capital Market Authority (CMA). CMA Rules on the Offer of Securities and Continuing Obligations, Art. 70: notice to the Exchange by the end of the third trading day on becoming the owner of, or interested in, 5% or more of a class of voting shares, and on any change to the list of persons interested in those shares.
A pledge over a substantial line is arranged with that reporting regime in view, so that the facility is both discreet and compliant, and so that positions near a control or takeover threshold are not disturbed.
For who must report a pledge, and what an enforcement would make public, in each market the firm covers, see the comparison of share pledge disclosure rules.
Structuring a facility here
Lombard facilities against Tadawul-listed shares are typically arranged for a tenor of twelve to thirty-six months, funded in SAR or another currency on a cross-currency basis, with the collateral held by a qualified custodian under bankruptcy-remote arrangements. Non-recourse, limited-recourse, and full-recourse structures are available; the choice interacts with the loan-to-value and the spread. Unlike a stock loan in the securities-lending sense, title does not pass: the line stays registered to the holder for the life of the facility.
| Exchange | Saudi Exchange (Tadawul) |
|---|---|
| City · Country | Riyadh · Saudi Arabia |
| Regulator | Capital Market Authority (CMA) |
| Disclosure | Substantial holdings at 5% |
| Principal indices | TASI (Tadawul All Share Index), MT30 |
| Segments | Main Market; Nomu (Parallel Market for SMEs) |
| Currency · Tenor | SAR · 12–36 months |
| Recourse | Non-recourse / limited-recourse / full-recourse |
The Saudi Arabia market as a whole
The Saudi Arabia country overview sets Tadawul in context: the national disclosure regime, the wider securities-backed lending picture, and the common ground behind any loan against shares listed in Saudi Arabia.
- Lombard loans in Saudi Arabia — the country overview: the national disclosure regime, currency, and how a facility is arranged.
Financing a position listed on Tadawul?
Request terms →Other exchanges in the region.
On this market, specifically.
Liquidity and the index
The Saudi Exchange is the largest equity venue in the Middle East and one of the largest emerging markets globally, with the TASI and the MT30 as its headline benchmarks. Large-cap depth is substantial, anchored by the region’s biggest issuers — the Aramco listing remains the largest IPO in history — so a sizeable line can generally be pledged without liquidity being the constraint. Smaller names sit on the Nomu parallel market and are read more selectively. Free float, in a market where strategic and state holdings are common, is the main variable when a Lombard loan is sized.
Structuring notes
Sharia compliance is central to structuring on Tadawul, and where a mandate requires it the Lombard credit can be arranged on Islamic-finance lines. Foreign ownership, opened progressively since 2015, may carry issuer-level considerations for a non-resident client, so eligibility is confirmed line by line.
Settlement runs through the Saudi infrastructure, with the pledged shares held by a qualified custodian so ownership is preserved. The CMA notification rule at 5% is respected throughout, and funding can be taken in SAR or in USD on a cross-currency basis.