SFS: UAE securities finance market targets next period of evolution
02 November 2026 UAE
Image: SFT
Opening the discussion, moderator Sanaa Clausse BenAbdelhadi asked attendees whether they viewed the UAE as a global securities finance centre, noting the market's transformation over the past decade and posing the question of what changes are still required to support further growth.
Muneeb Azhar, director of funding centre at Mashreq, pointed to the increasing role of securities finance in liquidity management, describing repo markets as 鈥渢he primary engine which kept the sector running and a stabilising force during periods of uncertainty鈥�, adding that this resilience had been demonstrated through both the Covid-19 pandemic and recent regional tensions.
Azhar argued that the market's next stage of development will centre on collateral mobility and real-time settlement. 鈥淲e have the cash, we have the participants, we have the collateral. But the question is, can it move in real-time?鈥� he stated.
Matthew Rodwell, senior associate of regulatory, fintech, and payments at Latham & Watkins, said the UAE's regulatory framework had become significantly more sophisticated over the past decade. 鈥淭he intention of regulation is to make operations frictionless and not to create too many ambiguities or uncertainties for people,鈥� he said.
Rodwell explained that responsibility for detailed market rules has increasingly shifted towards the exchanges, allowing greater flexibility and responsiveness.
鈥淚f you look at the equivalent that DFM has now, it's about 10x [larger],鈥� he remarked, comparing current securities lending rules with earlier regulations. 鈥淪ince I entered the market nearly 14 years ago, it's night and day.鈥�
Yasser Alsaadi, head of securities services for the Middle East and North Africa, (excluding Saudi Arabia), at HSBC, said operational efficiency and market accessibility remain critical to attracting international participation.
鈥淗ow do you bring it to a standard that everyone is familiar with that makes it easy to deploy and to participate?鈥� he asked.
Alsaadi added that the wider ecosystem has become a 鈥渟trong, stable market that will continue to develop in sophistication and complexity鈥�, with the arrival of hedge funds, ETF development, and increasing engagement with regulators.
While repo markets were widely regarded as mature and resilient, panellists agreed that securities lending remains at an earlier stage of development.
鈥淪FT does not just include funding by way of repo. It is more dynamic in nature,鈥� said Azhar, who argued that greater emphasis should be placed on securities lending transactions involving the movement of securities rather than cash.
Alsaadi described securities lending across the region as 鈥渁n untapped opportunity鈥�, adding that removing operational friction and expanding available asset pools would be crucial to future growth.
鈥淚 think lending is still across the region an untapped opportunity,鈥� he said. 鈥淩emoving friction out of the system, in a nutshell, is really, really critical here.鈥�
The panel switched focus to the importance of standardisation within Islamic finance markets. Azhar noted that differing interpretations of Shariah-compliant structures across jurisdictions have historically limited liquidity flows and participation.
鈥淔or everybody to participate, the standardisation is the key,鈥� he said. 鈥淭he standardisation of the documents, the standardisation of the acceptance of the various Islamic structures, that's what the key is.鈥�
Discussion later shifted to tokenisation, digital assets, and the future of collateral movement. Azhar argued that market participants cannot afford to ignore the trend towards digital assets. 鈥淭here is a fear of missing out because if the banks don't evolve into this spectrum, they will lag behind,鈥� he said.
Alsaadi echoed this view, emphasising the need for immediate settlement capabilities. 鈥淲e want to be able to move money when we know the demand is there, not based around cut-off settlements,鈥� he said. He added that 鈥渢he real-world use cases are becoming more real, becoming more effective鈥�.
Rodwell noted that regulators have already established frameworks for stablecoins and tokenised securities, but questions remain around collateral treatment and market interoperability. 鈥淚deally, we enter a world eventually where there's equal treatment of tokenised collateral versus fiat,鈥� he said.
Panellists also highlighted transparency as an area requiring further development. 鈥淚s this information available? The answer is yes,鈥� Alzhar stated. 鈥淚s it fully accessible? No, not at all.鈥�
Alsaadi agreed, stating that international investors increasingly expect access to transparent market data before committing capital.
鈥淲hen we talk to our international clients, that's their expectation. They need transparency of the data,鈥� he said.
Concluding the session, speakers agreed that continued market development and enhanced cross-border interoperability will be essential if the UAE is to strengthen its position as an increasingly important hub for securities finance activity.
Muneeb Azhar, director of funding centre at Mashreq, pointed to the increasing role of securities finance in liquidity management, describing repo markets as 鈥渢he primary engine which kept the sector running and a stabilising force during periods of uncertainty鈥�, adding that this resilience had been demonstrated through both the Covid-19 pandemic and recent regional tensions.
Azhar argued that the market's next stage of development will centre on collateral mobility and real-time settlement. 鈥淲e have the cash, we have the participants, we have the collateral. But the question is, can it move in real-time?鈥� he stated.
Matthew Rodwell, senior associate of regulatory, fintech, and payments at Latham & Watkins, said the UAE's regulatory framework had become significantly more sophisticated over the past decade. 鈥淭he intention of regulation is to make operations frictionless and not to create too many ambiguities or uncertainties for people,鈥� he said.
Rodwell explained that responsibility for detailed market rules has increasingly shifted towards the exchanges, allowing greater flexibility and responsiveness.
鈥淚f you look at the equivalent that DFM has now, it's about 10x [larger],鈥� he remarked, comparing current securities lending rules with earlier regulations. 鈥淪ince I entered the market nearly 14 years ago, it's night and day.鈥�
Yasser Alsaadi, head of securities services for the Middle East and North Africa, (excluding Saudi Arabia), at HSBC, said operational efficiency and market accessibility remain critical to attracting international participation.
鈥淗ow do you bring it to a standard that everyone is familiar with that makes it easy to deploy and to participate?鈥� he asked.
Alsaadi added that the wider ecosystem has become a 鈥渟trong, stable market that will continue to develop in sophistication and complexity鈥�, with the arrival of hedge funds, ETF development, and increasing engagement with regulators.
While repo markets were widely regarded as mature and resilient, panellists agreed that securities lending remains at an earlier stage of development.
鈥淪FT does not just include funding by way of repo. It is more dynamic in nature,鈥� said Azhar, who argued that greater emphasis should be placed on securities lending transactions involving the movement of securities rather than cash.
Alsaadi described securities lending across the region as 鈥渁n untapped opportunity鈥�, adding that removing operational friction and expanding available asset pools would be crucial to future growth.
鈥淚 think lending is still across the region an untapped opportunity,鈥� he said. 鈥淩emoving friction out of the system, in a nutshell, is really, really critical here.鈥�
The panel switched focus to the importance of standardisation within Islamic finance markets. Azhar noted that differing interpretations of Shariah-compliant structures across jurisdictions have historically limited liquidity flows and participation.
鈥淔or everybody to participate, the standardisation is the key,鈥� he said. 鈥淭he standardisation of the documents, the standardisation of the acceptance of the various Islamic structures, that's what the key is.鈥�
Discussion later shifted to tokenisation, digital assets, and the future of collateral movement. Azhar argued that market participants cannot afford to ignore the trend towards digital assets. 鈥淭here is a fear of missing out because if the banks don't evolve into this spectrum, they will lag behind,鈥� he said.
Alsaadi echoed this view, emphasising the need for immediate settlement capabilities. 鈥淲e want to be able to move money when we know the demand is there, not based around cut-off settlements,鈥� he said. He added that 鈥渢he real-world use cases are becoming more real, becoming more effective鈥�.
Rodwell noted that regulators have already established frameworks for stablecoins and tokenised securities, but questions remain around collateral treatment and market interoperability. 鈥淚deally, we enter a world eventually where there's equal treatment of tokenised collateral versus fiat,鈥� he said.
Panellists also highlighted transparency as an area requiring further development. 鈥淚s this information available? The answer is yes,鈥� Alzhar stated. 鈥淚s it fully accessible? No, not at all.鈥�
Alsaadi agreed, stating that international investors increasingly expect access to transparent market data before committing capital.
鈥淲hen we talk to our international clients, that's their expectation. They need transparency of the data,鈥� he said.
Concluding the session, speakers agreed that continued market development and enhanced cross-border interoperability will be essential if the UAE is to strengthen its position as an increasingly important hub for securities finance activity.
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