Stock Loans Against Saudi Arabia-Listed Equity
Institutional securities-backed lending against shares listed on Saudi Arabia’s principal equity exchanges — for controlling shareholders, founders, and family offices holding positions on the CMA-regulated market.
Saudi Arabia equity markets.
The firm structures stock loans against shares listed on Saudi Arabia’s one principal cash equity venue. The instrument allows founders, family offices, controlling shareholders, and concentrated single-stock holders to release liquidity against their Saudi Arabia-listed position — without selling, and without disturbing voting control or the share register. Beneficial ownership remains with the borrower throughout. The full position is recovered on repayment.
Indicative terms are calibrated to the specific position. Loan-to-value is set against the underlying’s single-stock liquidity and free float. Tenor typically runs twelve to thirty-six months for institutional transactions. Recourse profiles span non-recourse, limited-recourse, and full-recourse — chosen against the borrower’s downside-protection objectives. Loans can be denominated in SAR or in cross-currency structures (USD, EUR, GBP, or another major currency) depending on the borrower’s redeployment requirements.
Saudi Arabia stock loans at a glance:
| Listed venue | Saudi Exchange (Tadawul) |
|---|---|
| Regulator | Capital Market Authority (CMA) |
| Currency | SAR, with cross-currency options |
| Principal indices | TASI (Tadawul All Share Index), MT30 |
| Tenor | 12–36 months (institutional) |
| Recourse profile | Non-recourse, limited-recourse, or full-recourse |
| Loan-to-value | Calibrated per position |
Regulatory references for any specific transaction are mapped at the structuring stage with the borrower’s chosen counsel. The information above is published for general orientation and is not legal advice.
On this market, specifically.
Disclosure and regulation
Saudi Arabia’s Capital Market Authority requires substantial-ownership notification at 5%, with further reporting on subsequent 1% changes, so a large holder’s disclosure footprint becomes granular once that line is passed. Foreign access to Tadawul-listed shares opened progressively from 2015, and the route by which a non-resident holds — and can therefore pledge — those shares is central to how a transaction is structured. Sharia-compliance considerations at position level further shape the documentation and the economics, since the pledge is expected to sit comfortably with the issuer’s and the holder’s compliance requirements rather than cut across them.
An illustrative example
A holder of SAR 150 million in a TASI large-capitalisation constituent, at an illustrative loan-to-value of 45% — within the disclosed 20–65% range — releases roughly SAR 67.5 million in cash while retaining the shares. Where the holder’s obligations are in US dollars, the facility can be drawn on a cross-currency basis rather than in SAR. Where Sharia compliance is required, the structure is arranged accordingly. The amounts are round and illustrative, offered to show how a pledge is sized rather than to indicate any rate, term, or specific structure.
Illustrative only — not an offer, a quotation, or a commitment to lend.
Each Saudi Arabia exchange, covered.
What people most often ask about Saudi Arabia.
Q · 01 What is the typical loan-to-value for a stock loan against Tadawul-listed positions?
Q · 02 Which Tadawul-listed segments are eligible for stock loans?
Q · 03 In which currency can a Tadawul stock loan be denominated?
Q · 04 Are there foreign-ownership constraints on Tadawul-listed shares relevant to a pledge?
Countries adjacent to Saudi Arabia.
A specific Saudi Arabia position to discuss?
Submit a confidential enquiry. A senior principal will respond within one business day.