Dubai, UAE – Commercial Bank of Dubai (CBD) has announced the launch of its Gold Loan, a specialized working capital financing product designed specifically for companies operating in the precious metals sector. This new product provides gold and precious metals companies with access to gold-denominated ( XAU ) financing, offering greater alignment between financing and underlying assets and helping to mitigate price volatility risks without the need for additional hedging arrangements.

This financing facility was designed according to an advanced digital framework that enables gold transactions to be carried out electronically through accredited bullion trading partners, which contributes to simplifying operational processes and reducing the burdens associated with the physical handling of gold, while adhering to the standards and practices prevailing in the sector.

A gold loan allows companies to borrow and repay in gold, supporting inventory-based business operations and helping to mitigate exposure to price volatility. By aligning assets and liabilities within a single unit of measurement, this financing structure provides greater clarity and predictability in financial planning and reduces reliance on external hedging strategies for managing price risk.

Under this product, loans are granted in troy ounces of gold ( XAU ), priced based on global gold rental rates, with adjustments made according to each client's credit profile. The facility also offers clients flexibility in withdrawals, renewals, or repayments in line with operational requirements and inventory cycles.

To ensure efficient risk management, Commercial Bank of Dubai has adopted specialized pricing mechanisms overseen by the Treasury Department, along with frameworks for determining risk exposure limits based on clients' creditworthiness, as well as continuous monitoring systems to track gold price fluctuations and overall exposure levels. The product is offered to companies with strong financial fundamentals in the gold and jewelry sector, and its use is subject to the bank's ongoing credit assessment, compliance, and periodic monitoring processes.

In this context, Dr. Bernd van Linder, CEO of Commercial Bank of Dubai, said: “The UAE is one of the most active gold trading hubs globally, with a well-established and integrated ecosystem encompassing refining, wholesale, and retail. Companies operating in this sector require specialized financing structures tailored to the nature of the market in which they operate. By defining gold-denominated financing, we link credit to the underlying asset, simplifying risk management and improving financial planning for our clients. This fosters an ecosystem that reflects how gold is traded, financed, and managed in practice, while maintaining the necessary discipline and oversight within the current regulatory environment.”

The launch of the gold loan is expected to enhance Commercial Bank of Dubai’s ability to serve the gold and precious metals ecosystem in the United Arab Emirates, by providing financing structures that are in line with the operational requirements and practical realities of this vital sector.

About Commercial Bank of Dubai

Commercial Bank of Dubai (trading symbol CBD on the Dubai Financial Market) is a public joint-stock company established in 1969 by an Emiri decree issued by the late Sheikh Rashid bin Saeed Al Maktoum. The bank offers a comprehensive range of banking products and services to individuals and businesses through an extensive network of branches and ATMs across the UAE .

As of the first quarter of 2026, the bank recorded total assets of AED 157.9 billion and net profits of AED 912 million before tax, reflecting its strong market position and continued growth. The bank offers a full range of banking services for individuals, elites, private clients, businesses, corporations, and institutions, both conventional and Sharia-compliant. These services are supported by advanced digital platforms, including a next-generation mobile application and the award-winning iBusiness platform . Recognized for its innovation and digital leadership, Commercial Bank of Dubai actively supports national development goals through fintech, empowering UAE nationals, and strategic partnerships .

For more information, please contact the bank's Public Relations and Media team at: cbd.ogilvypr@ogilvy.com .

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