Deem Finance and J.P. Morgan Seal $400 Million Asset-Backed Securitization Deal

Last updated 4-03-2025

3 min

JP Morgan will provide up to $400 million in a revolving credit facility backed by Deem Finance's diversified loan portfolio The deal, approved by the UAE Central Bank, enhances financial inclusion and access to credit.

Structured to allow flexibility, enabling Deem Finance to scale financing in line with portfolio growth.

The transaction was advised by Daman Investments, which played a key role in structuring and execution.

Industry leaders from Deem Finance, JP Morgan, and Daman Investments have expressed confidence in the deal’s impact on the UAE’s financial sector.

Deem Finance, a leading UAE-based financial services firm and a subsidiary of Gargash Group, has announced a strategic partnership with global banking giant J.P. Morgan to execute an innovative asset-backed securitization deal worth $400 million. The agreement aims to bolster consumer lending and provide much-needed financial support to small and medium-sized enterprises (SMEs) across the UAE.

Under the terms of the deal, J.P. Morgan will extend a revolving credit facility backed by Deem Finance’s diverse portfolio of receivables. This flexible structure allows Deem to scale financing dynamically, aligning with the growth of its loan portfolio. The agreement has received regulatory approval from the UAE Central Bank, reinforcing its significance in advancing financial inclusion in the region.

A Boost for Financial Inclusion

This partnership 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, in line with the country's vision for a resilient and sustainable financial ecosystem.

Expert-Led Structuring and Execution

Daman Investments played a pivotal role as the financial advisor for Deem Finance, bringing its expertise in structured finance to execute the company's first-ever securitization deal. Their advisory services included evaluating underlying collateral, financial modeling, regulatory compliance, legal documentation, and operational implementation.

Industry Leaders Weigh In

Shihab Gargash, Chairman of Deem Finance, emphasized the strategic importance of the deal, stating:

"This partnership underscores our commitment to shaping the UAE’s financial landscape and promoting financial inclusion. Through our collaboration with J.P. Morgan, we are expanding Deem Finance’s reach and delivering more efficient financing solutions to both consumers and SMEs. We deeply appreciate the UAE Central Bank’s continuous support and regulatory guidance in fostering a stable and innovative financial sector.

Ahmed Khizer Khan, CEO of Daman Investments, highlighted the broader impact of the transaction, noting:

"This deal is a testament to the power of collaboration between local expertise and global financial institutions. We are proud to play a key role in a transaction that aligns with the UAE’s ambitious economic growth and financial sector development goals."

Chris Taylor, CEO of Deem Finance, reinforced the company’s commitment to supporting underbanked segments, stating:

"This financing reflects Deem Finance’s strategic and operational progress since Gargash Group’s investment. It strengthens our balance sheet and supports our expansion plans for the coming years."

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:

"Access to financing is crucial for a thriving economy. We are excited to partner with Deem Finance in supporting UAE consumers and SMEs through this strategic initiative."

Similarly, Mamoun Bennani, Head of Middle East & North Africa Markets and Sales at J.P. Morgan, called the transaction a milestone moment, adding:

"This is a historic deal for both J.P. Morgan and Deem Finance, and we look forward to building on this foundation for future collaborations."

A Step Toward a More Inclusive Financial Future

By leveraging structured finance solutions, Deem Finance and J.P. Morgan are setting a new benchmark for non-bank lending in the UAE. As financial institutions explore innovative funding mechanisms, deals like this pave the way for broader access to credit and a more dynamic financial sector.