Deem Finance Secures $400 Million Boost from J.P. Morgan

Deem Finance, a prominent UAE-based financial services firm under the Gargash Group, has finalized a $400 million asset-backed securitization facility with global banking leader J.P. Morgan. This strategic collaboration aims to enhance Deem Finance's consumer lending and provide substantial support to small and medium-sized enterprises across the UAE.

The agreement entails a revolving credit facility, with J.P. Morgan extending up to $400 million, secured against Deem Finance's diversified portfolio of receivables. This structure offers Deem Finance the flexibility to scale financing in tandem with the growth of its loan portfolio. The UAE Central Bank has granted regulatory approval for this arrangement, underscoring its significance in advancing financial inclusion within the region.

Shihab Gargash, Chairman of Deem Finance, emphasized the strategic importance of this partnership, stating that it underscores the company's commitment to shaping the UAE's financial landscape and promoting financial inclusion. He highlighted that the collaboration with J.P. Morgan enables Deem Finance to expand its reach and deliver more efficient financing solutions to both consumers and SMEs. Gargash also expressed gratitude for the continuous support and regulatory guidance from the UAE Central Bank in fostering a stable and innovative financial sector.

Chris Taylor, CEO of Deem Finance, reinforced the company's dedication to supporting underbanked segments, noting that this financing reflects Deem Finance's strategic and operational progress since Gargash Group's investment. He pointed out that the facility strengthens the company's balance sheet and supports its expansion plans for the coming years.

Daman Investments played a pivotal role as the financial advisor for Deem Finance in this transaction. Their expertise in structured finance was instrumental in executing Deem Finance's first-ever securitization deal, encompassing evaluations of underlying collateral, financial modeling, regulatory compliance, legal documentation, and operational implementation.

Ahmed Khizer Khan, CEO of Daman Investments, highlighted the broader impact of the transaction, stating that it is a testament to the power of collaboration between local expertise and global financial institutions. He expressed pride in playing a key role in a transaction that aligns with the UAE's ambitious economic growth and financial sector development goals.

J.P. Morgan executives also expressed enthusiasm for the partnership. George Davis, Co-Head of Securitized Products in Northern Europe at J.P. Morgan, commented on the significance of the deal in supporting the growth of Deem Finance and enhancing financial inclusion in the UAE.

This collaboration represents a significant milestone for Deem Finance in its mission to broaden financial access. By diversifying its funding sources through long-term institutional financing, the company aims to meet the needs of consumers and businesses that are underserved by traditional banking channels. Beyond strengthening Deem Finance's balance sheet, the collaboration also contributes to the development of the UAE's non-banking financial sector, aligning with the country's vision for a resilient and sustainable financial ecosystem.

The Gargash Group, established in 1918, has a diverse portfolio encompassing automotive, real estate, and financial services sectors. Their alignment with the nation's growth has positioned them as a significant contributor to the UAE's economic landscape. The group's venture into financial services through Deem Finance reflects its commitment to innovation and supporting the evolving needs of the market.

This strategic partnership between Deem Finance and J.P. Morgan not only strengthens the financial capabilities of both entities but also sets a precedent for future collaborations aimed at enhancing financial inclusion and supporting the growth of SMEs in the UAE. As the financial landscape continues to evolve, such partnerships are crucial in addressing the dynamic needs of consumers and businesses alike.

The successful execution of this asset-backed securitization facility demonstrates the potential of combining local market expertise with global financial acumen. It highlights the importance of innovative financial solutions in fostering economic growth and underscores the role of strategic partnerships in achieving broader financial inclusion objectives.

As Deem Finance leverages this facility to expand its lending activities, it is poised to play a pivotal role in supporting the UAE's economic diversification efforts. By providing accessible financing options to consumers and SMEs, Deem Finance contributes to the development of a robust and inclusive financial ecosystem, aligning with the nation's long-term economic vision.