Lombard loans on the DFM.
Private, securities-backed credit against Dubai Financial Market-listed shares — pledged, not sold.
A Lombard loan against DFM-listed shares is credit secured by a pledge of equity listed on the Dubai Financial Market. 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 Dubai Financial Market (DFM), Dubai.
- The pledge preserves ownership, dividends, and the upside for the holder.
- Loan-to-value is set per line; funded in AED or cross-currency.
- Structured under SCA, with disclosure from 5%.
The venue
Dubai's principal exchange, distinct from Nasdaq Dubai (which lists in USD under DFSA jurisdiction). DFM listings are predominantly Sharia-compliant; foreign ownership caps remain a per-issuer consideration for collateralisation.
Regulator and disclosure
The Dubai Financial Market operates under Securities and Commodities Authority (SCA). SCA disclosure rules: holdings notifications required at 5% and at every 1% change above. 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.
Structuring a facility here
Lombard facilities against DFM-listed shares are typically arranged for a tenor of twelve to thirty-six months, funded in AED 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 | Dubai Financial Market (DFM) |
|---|---|
| City · Country | Dubai · United Arab Emirates |
| Regulator | Securities and Commodities Authority (SCA) |
| Disclosure | From 5% |
| Principal indices | DFM General Index |
| Segments | Main Market; Sharia-compliant indices and segments |
| Currency · Tenor | AED · 12–36 months |
| Recourse | Non-recourse / limited-recourse / full-recourse |
The United Arab Emirates market as a whole
This page treats the DFM on its own terms. The country overview gathers every United Arab Emirates listing venue in one place — the national disclosure regime, the wider securities-backed lending picture, and the common ground behind any loan against shares listed there.
- Lombard loans in United Arab Emirates — the country overview: every listing venue, the national disclosure regime, currency, and how a facility is arranged.
- Lombard loans against ADX-listed shares — Abu Dhabi Securities Exchange, Abu Dhabi, the other principal United Arab Emirates venue.
Financing a position listed on the DFM?
Request terms →Other exchanges in the region.
On this market, specifically.
Liquidity and the index
The Dubai Financial Market is tracked by the DFM General Index, and its listings are predominantly Sharia-compliant. Liquidity concentrates in the larger index constituents, so the depth and free float of the specific line are what matter when a substantial position is pledged. It is worth distinguishing DFM from Nasdaq Dubai, which lists in USD under DFSA jurisdiction; the two are separate venues. For a DFM large-cap, free float rather than aggregate turnover generally frames how conservatively a Lombard loan is sized against the holding.
Structuring notes
Two features shape a pledge on DFM. Most listings are Sharia-compliant, so where a mandate requires it the Lombard credit can be arranged on Islamic-finance lines; and foreign-ownership caps remain a per-issuer consideration for a non-resident client, confirmed line by line. The venue is also distinct from Nasdaq Dubai, its USD-denominated, DFSA-regulated counterpart. Settlement runs through the Dubai infrastructure, with the pledged shares held by a qualified custodian so ownership is preserved, and the SCA notification regime — at 5% and each further 1% — is observed. Funding can be taken in AED or on a cross-currency basis.