Gold-Backed Lending UAE · Vault Infrastructure · LCORE

Gold-Backed Lending in the UAE — The Most Efficient Gold Loan in the Gulf

LCORE provides the UAE's most comprehensive gold-backed lending facility — ADGM-regulated, Lloyd's-insured, English Common Law governed — enabling businesses, family offices, and HNWIs across the Emirates to access AED or USD liquidity at 70–85% LTV.

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60–70%
Typical LTV
0
Capital Gains Tax (UAE)
WHR
Accepted Collateral
ADGM
Reg. No. 28158
The Structure

Gold monetisation
without selling

The traditional choice for an investor needing liquidity from a gold position is to sell. Selling triggers tax events, market timing risk, and re-entry costs. Gold-backed lending provides a third option: pledge the gold, receive cash, repay when ready, retain ownership throughout.

1
Deposit at LCORE
Physical gold deposited at LCORE's pre-customs Abu Dhabi vault. Warehouse Receipt issued in your name — bar-level detail, serial numbers, ADGM title document.
2
WHR Pledged to Lender
You approach an ADGM-licensed lender (bank or private credit fund) and pledge the Warehouse Receipt as collateral. LCORE notifies the lender of the pledge — gold remains in vault, your ownership noted as pledged.
3
Loan Disbursed
Lender disburses at agreed LTV (typically 60–70%). Loan in AED, USD, EUR, or other agreed currency. Mark-to-market monitoring — if gold price falls below threshold, lender may request top-up.
4
Gold Retained Throughout
Your gold remains allocated at LCORE throughout the loan. You do not sell. No capital gains event. No market re-entry cost when loan is repaid.
5
Repay and Release
Loan repaid. Pledge released. Warehouse Receipt returned in full. Gold ownership unchanged. Full cycle complete.
Economics

Gold-backed lending:
the numbers

ParameterExample (100 kg gold)
Gold value at deposit~$16.7M (100 kg × $167K/kg)
LTV 70%~$11.7M available credit
Lending rate (indicative)6–8% per annum
Annual interest cost ($11.7M @ 7%)~$819K/yr
Capital gains tax on sale (UAE)$0
Re-entry cost avoidedBid-ask spread + brokerage

For investors expecting gold to appreciate, borrowing against it at 6–8% while retaining upside is often preferable to selling. Gold-backed lending is standard practice among family offices, commodity funds, and HNWI treasuries.

LCORE's Role

Infrastructure provider —
not a lender

LCORE does not provide loans. LCORE provides the vault infrastructure — allocated storage and Warehouse Receipt issuance — that ADGM-licensed lenders accept as collateral. This distinction matters for regulatory clarity.

What LCORE Provides

Allocated storage. ADGM-regulated Warehouse Receipt issuance. Pledge notification to lender. Mark-to-market reporting. Lender liaison for WHR transfer/release on repayment.

What Lenders Provide

Loan disbursement. LTV determination. Interest rate. Loan documentation. Lenders accepting LCORE WHR include ADGM-licensed banks and private credit funds. LCORE can facilitate introductions for qualifying clients.

Important: LCORE is not a lender and does not provide financial advice. The above is illustrative only. All loan terms are determined by the lending institution. LTV ratios and interest rates are indicative and may vary. Not investment advice.
FAQ

Frequently asked questions

What types of UAE clients use LCORE's gold-backed lending?
Family offices, HNWI investors, gold traders and jewellers, real estate developers seeking bridge finance, and trading companies using gold as working capital collateral are the primary UAE client profiles.
How does LCORE's LTV compare to UAE commercial bank gold lending?
UAE banks typically offer 60–75% LTV on gold collateral. LCORE's 70–85% range — with internationally insured, segregated allocated custody — provides both higher advance rates and superior collateral security.
Are there tax advantages to gold-backed lending versus selling gold in the UAE?
Yes. The UAE charges zero CGT on gold gains — making gold a tax-efficient collateral. By borrowing against gold rather than selling it, UAE clients access liquidity without triggering a disposal and retain their gold's upside exposure.
Which lenders accept LCORE WHRs from UAE clients?
Major international banks and alternative lenders accept ADGM Warehouse Receipts as collateral. The WHR's legal status under English Common Law — familiar to global lenders — makes it a recognized collateral instrument. LCORE can facilitate introductions to lending partners.
What happens if the gold price drops below the LTV threshold?
Standard margin call procedures apply — the borrower must deposit additional gold or reduce the loan. LCORE's allocated custody ensures the collateral gold is always identifiable and available. In worst case, the lender can claim the specific WHR-identified bars without competing with other creditors.
Also see: Gold Warehouse Receipt · Allocated Storage · Gold Yield Program · ADGM Regulation

Access liquidity. Retain ownership.

Gold-backed lending infrastructure from $5M. Confidential consultation. ADGM-licensed vault.

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