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Middle East & Africa Stock Loans CMA SAR

Saudi Arabia Stock Loans against Tadawul shares

A stock loan against shares you hold on Saudi Arabia’s principal equity venue — for family offices, founders and controlling shareholders, without selling a single share.

01 · Process
How it works

From enquiry to funding.

—StageWhat happensTiming
01Confidential enquiryThe holding and the objective, shared under NDA through a secure channel.Day one
02Indicative termsStructure, sizing and indicative pricing returned against the position.1–2 days
03Structuring & documentationKYC, share and market review; terms formalised under institutional documentation alongside your counsel.1–2 weeks
04Custody & fundingPledged shares held at a qualified custodian; collateral secured and proceeds released.On completion
02 · The Market
Middle East & Africa

Saudi Arabia equity markets.

A Saudi Arabia stock loan lets a founder, family holding or controlling shareholder raise cash against a position listed on the Saudi Exchange (Tadawul) without selling it, without surrendering voting control, and while staying the beneficial owner until the facility is repaid. Because the Saudi riyal is held to the US dollar at 3.75 by the Saudi Central Bank (SAMA), a SAR-listed line supports a USD or EUR drawdown cleanly — which is how most cross-border borrowers take the loan.

What shapes a Saudi facility is the disclosure regime, the foreign-ownership frame and Sharia treatment of the name. Under the Capital Market Authority’s continuing-obligations rules, an interest reaching 5% of a listed company’s shares is notifiable, with further notifications on each subsequent 1% change — so the pledge is sequenced around that threshold. Foreign holdings sit inside per-investor and aggregate caps, and a strategic foreign stake can carry a lock-up, both of which bear on who may hold collateral. Liquidity is rarely the constraint for TASI and MT30 constituents; it weighs more on Nomu-listed and thinly traded names. Shares settle T+2, which governs when the pledge is perfected and the loan can be drawn.

Saudi Arabia stock loans at a glance:

Listed venueSaudi Exchange (Tadawul)
RegulatorCapital Market Authority (CMA)
CurrencySAR
SettlementT+2
Disclosure threshold5%
Principal indicesTASI (Tadawul All Share Index), MT30
StructureNon-recourse, limited- or full-recourse

Regulatory references are published for general orientation and are not legal advice.

03 · Exchanges
One Venue

Each Saudi Arabia exchange, covered.

Tadawul · Riyadh

Saudi Exchange (Tadawul)

The largest equity venue in the Middle East and one of the largest emerging-market venues globally. Foreign ownership opened progressively from 2015; the Saudi Aramco listing remains the largest IPO in history. Sharia compliance considerations are central to position-level structuring.

View Tadawul →
04 · FAQ
Saudi Arabia · Stock Loans

What holders ask about Saudi Arabia.

01Does a share pledge in Saudi Arabia have to be disclosed to the CMA?
It can. Under the Capital Market Authority’s continuing-obligations rules, an interest reaching 5% of a listed company’s shares is notifiable, and each subsequent 1% change is notifiable again — and the interest a lender takes over pledged shares can be relevant to that count. We map the exact notification and timing to your holding before anything is executed, and sequence the pledge around it.
02Can a stock loan be structured to respect Sharia considerations?
Yes, and for Saudi-listed positions it usually has to be. Because Sharia screening is central to how many holders and their counterparties treat a name, the facility is structured at position level to fit — commonly through a compliant sale-and-repurchase or profit-based form rather than a conventional interest charge. We set the structure and its documentation out expressly, alongside the settlement and tax points. These notes are references for orientation, not legal advice.
03How much can I borrow against Saudi Arabia-listed shares?
The loan-to-value is set to your holding — its free float, daily traded volume, volatility, and your own regulatory standing. A large-cap with deep free float supports a higher LTV than a thin mid-cap, and a non-recourse structure runs lower than a full-recourse one on the same stock. We quote indicative ratios only after reviewing the position.
04Which Saudi Arabia exchanges can I borrow against?
We cover Saudi Exchange (Tadawul). Financing is arranged against shares listed there; which venue applies depends on the issuer’s primary listing and how the holding trades.
05What currency can the facility be drawn in?
The default is SAR, the listing currency. Cross-currency structures — drawing a USD or EUR loan against the position — are common, and bring hedging, settlement and tax points we set out expressly in the documentation.
06Who regulates these transactions in Saudi Arabia?
Capital Market Authority (CMA) is the principal regulator. Black Haven Investments lends as principal; lending and any regulated activity are conducted by, or through, appropriately licensed or registered entities in the relevant jurisdiction.
07What is the settlement cycle on Saudi Arabia exchanges?
Equities listed on Saudi Exchange (Tadawul) generally settle on T+2. The settlement cycle governs when the pledge over the shares is perfected and the loan can be drawn, so we align the funding mechanics to it.
08At what level does a shareholding become disclosable in Saudi Arabia?
The principal threshold is 5%, under CMA disclosure rules overseen by CMA. Crossing it — in either direction — triggers a notification, and a pledge can itself be relevant; we map the exact levels to your holding before anything is executed.
09Can a foreign or offshore holder pledge Saudi Arabia-listed shares?
Generally yes. The shares sit with a qualified custodian and are pledged to secure the facility; any foreign-ownership limits or registration requirements turn on the issuer and sector, and we check them against your specific line at the structuring stage.
10How long does it take to arrange a stock loan in Saudi Arabia?
Indicative terms typically follow within one to two business days of a confidential enquiry. Documentation and funding usually complete within about three weeks, depending on custody onboarding and the size of the position.
05 · Adjacent Markets
Middle East & Africa

Countries adjacent to Saudi Arabia.

United Arab Emirates · Israel · South Africa · Qatar · Kuwait · Egypt · Nigeria

All countries →

Guides

Related guides.

Fundamentals

How Much Can You Borrow Against Your Shares?

There is no flat figure. The advance against listed shares is set to the specific holding, driven by liquidity, volatility, concentration, your regulatory standing and the recourse profile you choose.

Read → Risk

What Happens If Your Stock Falls During a Loan?

If your pledged shares fall in value during a loan, what happens depends entirely on the structure you agreed at the outset — recourse facilities can call for a top-up, non-recourse facilities cannot.

Read → Process

How to Get a Stock Loan: The Process, Step by Step

Getting a stock loan runs through five disciplined stages: a confidential enquiry, indicative terms, documentation, custody and pledge, then funding under a single accountable principal.

Read →

A particular Saudi Arabia holding to talk through?

Send a confidential enquiry, and a senior principal will reply within one business day.

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