Commercial Bank of Dubai (CBD) has launched a Gold Metal Loan (GML), a specialised working capital product designed for businesses operating in the precious metals sector. The product enables clients to access financing denominated directly in gold (XAU), aligning borrowing with the underlying commodity, without the need to hedge.
The facility is structured on a digital framework, where gold is transacted electronically through approved bullion partners, reducing operational complexity associated with physical handling, while maintaining alignment with market practices.
Gold Metal Loans (GML) will allow businesses to borrow and repay in gold, supporting inventory-based operations and helping manage exposure to price fluctuations. By aligning assets and liabilities within the same unit, the structure enables more predictable financial planning and reduces reliance on external hedging strategies.
Under the offering, loans are extended in troy ounces of gold (XAU), with pricing linked to international gold lease rates and adjusted based on client profiles. Facilities can be drawn, rolled over, or repaid in line with operational requirements and inventory cycles.
CBD has incorporated treasury-led pricing mechanisms, exposure tolerance frameworks linked to customer credit ratings, and continuous monitoring to manage fluctuations in gold value and overall exposure. The product is targeted at established gold and jewellery businesses with strong financial standing and access is subject to CBD’s credit assessment processes, compliance requirements, and ongoing monitoring frameworks.
Dr. Bernd van Linder, Chief Executive Officer of CBD, said “The UAE is one of the most active gold trading hubs globally, with a well-established ecosystem spanning refining, wholesale, and retail. Businesses in this sector require financing structures that are as specialised as the market they operate in. By denominating financing in gold, we are aligning credit with the underlying asset, which simplifies risk management and improves financial planning for our clients. With this offering, we are building on an ecosystem that reflects how gold is traded, financed, and managed in practice, while maintaining the discipline and oversight required in today’s regulatory environment.”
The introduction of GML is set to strengthen CBD’s capabilities in serving the UAE’s gold and precious metals ecosystem, providing financing structures aligned with the operational realities of the sector.
