eToro Introduces Stock Lending Programme In UAE, Allowing Users To Earn Passive Income

eToro, a trading and investment platform, has introduced its stock lending programme in the UAE. This initiative allows local users to earn passive income by lending their stocks.

Users eligible for this programme can opt in, allowing their entire stock portfolio to be considered for lending. Participants will receive monthly payments equal to 50% of the net revenue eToro earns from these transactions. Monthly statements will detail any income earned through stock lending.

George Naddaf, Managing Director at eToro MENA, stated, "Expanding stock lending to the UAE reflects our commitment to providing our users with more ways to earn passive income. Local retail investors can now participate in a practice that was previously only available to institutions, helping them make their investments work harder."

Only whole-unit stock positions qualify for lending; CFDs and fractional shares are excluded. Eligible shares are rounded down to the nearest whole share. Stocks with low market liquidity, high volatility, and high demand are more likely to be borrowed and generate higher earnings.

The loans are backed by collateral exceeding the value of the lent securities, using cash or high-quality liquid assets. This measure helps mitigate risk for participants. While stocks are on loan, ownership temporarily transfers to the borrower, meaning lenders lose voting rights but retain dividend rights.

Lenders can still sell their stocks or exit the programme anytime without incurring costs. This flexibility ensures that users maintain control over their investments while participating in the stock lending programme.