Lombard loans on the DFM.
Private 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.
- 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.
| 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 |
Financing a position listed on the DFM?
Request terms →See also the country overview: Lombard loans in United Arab Emirates.
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.