Deem Finance and J.P. Morgan partner with a milestone $400 million securitization facility to support consumer and SME lending in the UAE

Deem Finance LLC (“Deem”), a Gargash Group company and a leading consumer finance provider regulated by the UAE Central Bank, has partnered with J.P. Morgan in a pioneering asset-backed securitization (ABS) to support its lending activities for consumers and SMEs. J.P. Morgan will be providing up to $400 million through a senior revolving facility backed by a diversified pool of receivables originated by Deem across various asset classes. The transaction is structured to provide significant flexibility, allowing funding to adjust to growth in the portfolio size and composition to support Deem's dynamic growth strategy.

This collaboration marks a milestone in Deem’s mission to enhance financial accessibility and inclusion. The transaction successfully diversifies Deem’s funding sources with long-term institutional financing, enhancing its ability to address underserved customer segments. This initiative not only reinforces Deem’s balance sheet and growth but also contributes to the advancement of the UAE’s non-bank financial sector, aligning with the nation’s vision for a dynamic and well-regulated financial ecosystem.

Daman Investments acted as financial advisor for Deem and played a pivotal role in structuring and executing Deem’s inaugural ABS facility. Leveraging its expertise in structured finance, Daman provided comprehensive advisory support across structuring, collateral analysis, cashflow modeling, regulatory matters, legal documentation and operational implementation.

Shehab Gargash, Chairman of Deem Finance, stated: “This landmark transaction showcases our deep belief in the UAE’s financial landscape. 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. We also extend our sincere appreciation to the UAE Central Bank for its unwavering support and regulatory guidance, which has been instrumental in fostering an innovative yet robust and resilient financial ecosystem.”

Ahmed Khizer Khan, CEO of Daman Investments, commented: “This milestone transaction underscores the strength of collaboration between local expertise and global financial leadership. We are proud to have played a pivotal role in this strategic financing, aligning with the UAE’s remarkable growth journey and its ambition to lead as a global economic hub.”

“This financing reinforces our commitment to addressing the needs of underserved communities in the UAE,” said Chris Taylor, CEO of Deem Finance. “The transaction validates the significant strategic and operational progress the team has made at Deem and supports our balance sheet and growth ambitions over the coming years.”

George Deves, Co-Head of Northern Europe ABS, at J.P. Morgan said: “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.”

Mamoun Bennani, Head of MENA Markets (public side) and Türkiye Sales, at J.P. Morgan said: “This is a landmark transaction for both J.P. Morgan and Deem. We are looking forward to the next steps of our partnership.”

About Deem Finance:

Deem Finance LLC is one of UAE’s leading consumer finance providers established in 2008 and regulated by the Central Bank of the UAE. The financial services provider was acquired in September 2021 by the Gargash Group, one of the UAE’s leading family business conglomerates. With commitment to innovation, Deem Finance LLC offers a wide range of personal and corporate financial services, including credit cards, personal loans, merchant financing, auto loans, and corporate investments. 

About Daman Investments:

Daman Investments stands as a preeminent regional investment firm, distinguished for its comprehensive suite of non-banking financial services catering to institutional clients, corporations, SMEs, and high-net-worth individuals. Our overarching objective is to assume a pivotal role in the burgeoning new Arab World Economy. With a legacy spanning over 25 years, Daman Investments has consistently redefined the contours of the financial services landscape.

Daman Investments PSC (“Daman”) is a private joint stock company operating under the regulation, control and supervision of the Securities & Commodities Authority of the UAE (“SCA”). Daman is licensed and authorized by the SCA – License Number-301043 for the conduct of the following financial activities: (i) Portfolios Management (Category 2 – Dealing in Investment); (ii) Investment Fund Management (Category 2 – Dealing in Investment); and (iii) Promotion (Category 5 – Arranging and Advice).

About J.P. Morgan:

JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services firm based in the United States of America (“U.S.”), with operations worldwide. JPMorganChase had $4.0 trillion in assets and $345 billion in stockholders’ equity as of December 31, 2024. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers in the U.S., and many of the world’s most prominent corporate, institutional and government clients globally. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.