Deem Finance lands $400m J.P. Morgan deal to fuel UAE lending
Financial services provider Deem Finance has partnered with J.P. Morgan in a $400m securitisation facility to support its lending activities for consumers and SMEs in the UAE.
The asset-backed securitisation (ABS) structure will provide Deem with long-term institutional financing to strengthen its balance sheet and funding strategy.
Deem Finance, which forms part of the UAE's Gargash Group and is regulated by the UAE Central Bank, will receive up to $400m through a senior revolving facility backed by a diversified pool of receivables. The structure is designed to offer flexibility, allowing funding to adjust based on the company's portfolio growth and composition.
'This landmark transaction showcases our deep belief in the UAE's financial landscape,' said Shehab Gargash, chairman of Deem Finance.
'By leveraging our expertise and partnering with J.P. Morgan, we are enabling Deem's expansion while enhancing access to credit for consumers and SMEs,' Gargash added.
The agreement aligns with Deem's strategy to enhance financial inclusion and accessibility. By diversifying its funding sources through the deal with J.P. Morgan, Deem also seeks to strengthen its ability to serve underbanked segments.
The funding will also support Deem's range of financial products, including credit cards, personal and auto loans, merchant financing, and corporate investments. According to its website, Deem offers personal loans to individuals earning at least Dhs5,000, with interest rates ranging from 15.99 per cent to 34.99 per cent per year.
J.P. Morgan executives emphasised the deal's role in expanding credit access across the UAE.
'We are pleased to be collaborating with Deem on this strategic transaction. Access to credit is vital for the local economy, and we are pleased to work with Deem on this initiative to support consumers and small businesses in the UAE,' said George Deves, co-head of Northern Europe ABS at J.P. Morgan.
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