UAE Securities Finance Sector Targets Collateral Mobility and Regulatory Upgrades at Symposium

Industry experts at the Securities Finance Symposium in Dubai examined the next stage of growth for the UAE securities finance ecosystem, according to Securities Finance Times. Muneeb Azhar, director of the funding centre at Mashreq, noted that repo markets have served as a stabilizing force and primary liquidity engine through periods of stress, including the Covid-19 pandemic and regional tensions. Azhar stated that the next phase of development requires improved collateral mobility and real-time settlement capabilities.

Addressing the regulatory landscape, Matthew Rodwell, senior associate at Latham & Watkins, stated that the UAE's framework has matured significantly over the past decade. Rodwell noted that detailed rulemaking has increasingly devolved to individual exchanges, pointing out that current securities lending rules at the Dubai Financial Market (DFM) are approximately ten times larger than earlier regulations, which enhances operational flexibility.

Panellists highlighted securities lending as an underdeveloped segment compared to mature repo markets. Yasser Alsaadi, head of securities services for MENA (excluding Saudi Arabia) at HSBC, described regional securities lending as an untapped opportunity driven by hedge funds and exchange-traded fund activity. Both Alsaadi and Azhar highlighted the necessity of reducing operational friction and standardising documentation and Shariah-compliant structures across jurisdictions to widen liquidity flows.

Turning to innovation and market access, speakers noted that UAE regulators have introduced frameworks for stablecoins and tokenised securities, though clear guidance on treating tokenised collateral on par with fiat is still needed. The panel concluded that enhancing data transparency and cross-border interoperability will be critical for the UAE to solidify its standing as a global securities finance centre.