Confidential Enquiries · Institutional Counterparties Only
United Arab Emirates Abu Dhabi SCA AED

Stock Loans Against ADX-Listed Equity

Institutional securities-backed lending against shares listed on Abu Dhabi Securities Exchange — for controlling shareholders, founders, and family offices holding positions on the SCA-regulated United Arab Emirates market.

01 · The Market
Middle East & Africa

About Abu Dhabi Securities Exchange.

Abu Dhabi Securities Exchange is the principal cash equity venue of United Arab Emirates. Established in 2000, it operates today under the regulatory oversight of the Securities and Commodities Authority (SCA). The exchange’s principal indices are FTSE ADX 15, ADX General Index. Listing standards and continuing obligations are codified in the ADX Listing Rules; SCA Rulebook.

The principal Abu Dhabi equity venue, increasingly weighted by major sovereign-affiliated listings (ADNOC subsidiaries) and a deepening listings pipeline. Foreign ownership rules have liberalised materially since 2020.

The exchange operates the following segments: Main Market; Second Market; Growth Market. Each segment imposes its own listing standards and continuing obligations, which interact with the firm’s eligibility analysis for institutional positions.

02 · Eligibility
For Institutional Positions

What qualifies on ADX.

ADX is an established but selective market. Eligibility on ADX is assessed against single-stock liquidity, free float, and shareholder concentration; the firm’s threshold for institutional positions is calibrated to the market’s depth and the specific underlying.

For any specific position on ADX, the firm’s eligibility review addresses: free float and average daily trading volume relative to the contemplated pledge size; the shareholder’s status (controlling shareholder, substantial shareholder, director, or otherwise) and the resulting disclosure profile; the issuer’s sector and the segment in which it is listed; any concurrent regulatory considerations (takeover-code mechanics, foreign-ownership caps, regulated-industry restrictions); and the specific structuring requirements of the contemplated transaction (LTV, tenor, currency, recourse profile, custody arrangement).

Indicative terms for a ADX-listed position are issued only after a review of the specific position. A published rate sheet is not used; the discipline of the structuring is itself the value.

03 · Disclosure
SCA Reference

Framework cited on ADX.

The principal regulatory reference on ADX is SCA disclosure rules. Operational mechanics, reporting levels, step thresholds, and per-transaction interpretation are governed by the underlying rules and the relevant national-law overlays. These are mapped against any contemplated transaction at the structuring stage in coordination with the borrower’s chosen counsel.

For controlling shareholders, directors, and other regulated holders, additional regimes apply on ADX — including the takeover-code mechanics of the United Arab Emirates market, insider-dealing rules under the SCA framework, and listing-rule restrictions on dealings during defined windows. The disclosure footprint of any contemplated transaction is mapped at the structuring stage; sequencing, language, and concurrent regulatory communications are managed accordingly.

References above are public regulatory citations published for information only. They are not legal advice. The primary sources — the ADX Listing Rules; SCA Rulebook, the Securities and Commodities Authority rulebook, and applicable statutory instruments — should be consulted directly. Each enquirer should obtain independent legal advice in the relevant jurisdiction for any specific transaction.

04 · Process
From Enquiry to Funding

The route to an ADX stock loan.

The firm’s engagement model is consistent across markets: five disciplined stages from confidential enquiry to capital deployment, with senior principals throughout. For ADX-listed positions, the structuring stage addresses the market-specific factors above — settlement under the ADX conventions, custody arrangements with a United Arab Emirates-qualified custodian, AED-denominated and cross-currency options, and disclosure timing under the SCA regime.

See the full process →

05 · FAQ
ADX-Specific Questions

What people most often ask about ADX.

Q · 01 What is the typical loan-to-value for a stock loan against ADX-listed positions?
LTV on ADX is calibrated to the specific position. The principal drivers are the underlying’s free float, average daily trading volume, volatility, and the borrower’s regulatory profile. For a large-cap, high-volume ADX name, LTV is materially higher than for a thinly-traded or recently-listed position. A non-recourse structure runs at lower LTV than a full-recourse structure on the same underlying. Indicative ratios are issued only after a review of the specific ADX position; there is no published rate sheet.
Q · 02 Which ADX-listed segments are eligible for stock loans?
Eligibility is assessed case by case. The firm considers positions across the segments operated by Abu Dhabi Securities Exchange: Main Market; Second Market; Growth Market. Higher-tier (premium / large-cap / main-market) segments are typically more straightforward to structure than growth / SME segments, principally because of free-float and liquidity differences.
Q · 03 In which currency can a ADX stock loan be denominated?
The default is AED, the listing currency. Cross-currency structures, for example, financing an AED-denominated ADX position with a USD or EUR loan, are common and routinely available. The cross-currency element introduces hedging, settlement, and tax considerations that are addressed in the documentation.
Q · 04 Are there foreign-ownership constraints on ADX-listed shares relevant to a pledge?
Foreign-ownership rules vary by issuer and by sector on ADX; regulated sectors (banking, telecoms, defence, natural resources, and others) commonly carry ownership caps and notification requirements that interact with collateralised structures. The firm’s structuring review addresses these expressly for any specific position.
06 · Other United Arab Emirates Exchanges
In the Same Country

Other United Arab Emirates venues.

DFM Dubai

United Arab Emirates overview →

A specific ADX position to discuss?

Submit a confidential enquiry. A senior principal will respond within one business day.