Lombard loans in United Arab Emirates.
Private credit against United Arab Emirates-listed shares — pledged, not sold, with ownership retained.
A Lombard loan against United Arab Emirates-listed shares is credit secured by a pledge of equity listed on the ADX, DFM. 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 ADX, DFM (ADX / DFM).
- 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 AED or cross-currency.
- Structured under the SCA regime, with disclosure from 5%.
Eligible collateral and venues
Lombard Financing arranges facilities against equity listed on the principal United Arab Emirates venues: Abu Dhabi Securities Exchange (ADX); Dubai Financial Market (DFM). 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 United Arab Emirates are regulated by Securities and Commodities Authority (SCA). 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 AED 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) | Abu Dhabi Securities Exchange (ADX); Dubai Financial Market (DFM) |
|---|---|
| Regulator | Securities and Commodities Authority (SCA) |
| Currency | AED (cross-currency available) |
| Disclosure threshold | From 5% substantial-holding disclosure |
| Principal indices | FTSE ADX 15, ADX General Index; DFM General Index |
| Indicative tenor | 12–36 months, renewable by agreement |
| Recourse | Non-recourse / limited-recourse / full-recourse |
Considering a Lombard loan against a United Arab Emirates-listed position?
Request terms →The listing venues in United Arab Emirates.
ADX
Abu Dhabi Securities Exchange — Abu Dhabi. Regulator: SCA.
ADX Lombard loans →DFM
Dubai Financial Market — Dubai. Regulator: SCA.
DFM Lombard loans →Lombard loans across Middle East & Africa.
On this market, specifically.
Disclosure and regulation
In the Emirates the Securities and Commodities Authority requires a holder to notify at 5% and on each further 1% change, a regime that applies across both the Abu Dhabi and Dubai venues. The recurring structuring question is foreign ownership: issuer-level caps, though materially liberalised in recent years, still govern how much of a line a non-resident client may hold and pledge, and a number of listings are Sharia-compliant. A Lombard credit is arranged so the SCA notifications are met and the client’s disclosed interest, together with any ownership-cap and Sharia considerations, remains intact.
An illustrative example
Take a private client holding AED 220 million in a large-cap position listed in Abu Dhabi or Dubai. At an illustrative loan-to-value of 45% — within the disclosed 20–65% range — a Lombard loan advances roughly AED 99 million while the shares remain pledged and ownership, dividends, and upside stay with the client. Funding can be taken in AED or in USD on a cross-currency basis. The amounts are round and hypothetical, offered to illustrate the structure rather than to suggest any pricing.
Illustrative only — not an offer, a quotation, or a commitment to lend.