Can Deem’s US$400M ABS Deal with J.P. Morgan Drive Growth for UAE’s SMEs?

10x Industry

Mokshita P.
10x Industry
Published:

Can Deem’s US$400M ABS Deal with J.P. Morgan Drive Growth for UAE’s SMEs?

In partnership with J.P. Morgan, Deem Finance’s innovative US$400 million ABS aims to enhance financial accessibility for consumers and SMEs, supporting the UAE’s non-bank financial sector growth.

In a major boost for the UAE’s financial landscape, Deem Finance LLC—a prominent consumer finance provider under the Gargash Group and regulated by the UAE Central Bank—has teamed up with J.P. Morgan to launch an innovative asset-backed securitisation (ABS). This move is set to support Deem’s lending operations for both consumers and SMEs, marking a significant step forward in diversifying funding sources and driving growth.

A Flexible Financing Structure

J.P. Morgan is stepping in with a senior revolving facility that could offer up to US$400 million. What’s especially interesting about this deal is that the financing is secured by a diversified pool of receivables that Deem has built from various asset classes. The flexible nature of the facility means that the funding can scale up in line with the growth and evolving composition of Deem’s portfolio—perfect for a business with ambitious expansion plans.

Enhancing Financial Accessibility

At its core, this partnership is about enhancing financial accessibility and inclusion in the UAE. By securing long-term institutional financing, Deem is well-positioned to expand its reach, particularly towards underserved segments in the market. This initiative doesn’t just strengthen Deem’s balance sheet; it also plays a crucial role in bolstering the UAE’s non-bank financial sector, supporting the country’s vision for a robust and well-regulated financial ecosystem.

Behind the Scenes: Strategic Advisory Support

One of the key players in making this transaction a success was Daman Investments, which acted as a financial advisor to Deem. Their expertise in structured finance was critical in navigating the complex aspects of the deal—from collateral analysis and cashflow modelling to handling regulatory matters and legal documentation. Their comprehensive support ensured that the transaction was not only structured effectively but also executed seamlessly.

Voices from the Partnership

Leaders from both sides have shared their enthusiasm about the deal:

  • Shehab Gargash, Chairman of Deem Finance, emphasised the company’s strong belief in the UAE’s financial future, noting that the collaboration with J.P. Morgan is a testament to their commitment to expanding access to credit for both consumers and SMEs.

  • Chris Taylor, CEO of Deem Finance, highlighted that this financing is a critical pillar supporting the company’s balance sheet and future growth ambitions.

  • Ahmed Khizer Khan, CEO of Daman Investments, underlined the strength of merging local expertise with global financial leadership, a synergy that positions the UAE to continue its impressive economic journey.

  • On the J.P. Morgan side, George Deves, Co-Head of Northern Europe ABS, and Mamoun Bennani, Head of MENA Markets, both expressed their excitement about the deal and the potential it has to benefit the local economy by improving access to credit.

Looking Ahead

This landmark transaction is more than just a financial arrangement—it’s a clear signal of the transformative changes taking place in the UAE’s finance sector. As Deem Finance continues to expand its operations and support a wider range of customers, initiatives like these not only reinforce their market position but also contribute significantly to the country’s economic dynamism.