GCC Capital Markets Accelerate Secured Financing to Boost Institutional Liquidity

Middle East capital markets are transitioning from broad strategic planning to a phase of selective execution in secured financing. Financial institutions and regulators across the GCC are moving beyond framework development to deploy active securities lending and borrowing (SLB) and repurchase agreement (repo) programs. This shift follows years of infrastructure investment aimed at deepening liquidity and providing institutional investors with sophisticated collateral management tools. Regulatory Evolution and Operational Implementation The move toward execution is primarily driven by the UAE and Saudi Arabia, where market operators such as the Abu Dhabi Securities Exchange (ADX), Dubai Financial Market (DFM), and Saudi Tadawul have established formal SLB and repo guidelines. Market participants are now prioritizing high-quality liquid assets (HQLA) and focusing on specific segments of the sovereign and corporate bond markets to test the efficiency of these new frameworks. This selective approach allows institutions to manage counterparty risk while gradually increasing market participation. Asset managers and local banks are increasingly utilizing secured financing to optimize…