ADX to bolster its leading position in the region

Business Bureau, Gulf Today

As part of the Abu Dhabi Securities Exchange’s (ADX) strategy aimed at bolstering its leading position in the region and extending its cooperation with global financial markets, Khalifa Salem Al Mansouri, Acting Chief Executive of ADX, met senior officials at the London Stock Exchange (LSE) recently. The meeting was part of the ADX delegation’s visit to the British capital recently. As part of the trip, the ADX delegation also participated in the MSCI Annual Global Investing Conference and workshops and visited iov42 Limited. The latter specializes in financial technology solutions and applications related to Blockchain.

During his visit to the LSE, Al Mansouri held several meetings, including one with Nigel Ratti, Chief Executive of London Stock Exchange, during which he discussed the prospects of cooperation between ADX and the LSE. Al Mansouri also met Gary Rynhoud, Director, FTSE Russell MEA. As part of the meeting, they discussed joint business opportunities for indices and market data.

Also during the visit, Al Mansouri met Charlie Walker, Head of Primary Markets LSE; Martina Garcia, Head of Emerging Markets Strategy, LSE; Gokul Mani, Head of Primary Markets in the Africa, Middle East, India, LSEG & Team; and Umerah Akram, Head of Elite Growth UK & Licensing LSE. They deliberated the possibilities of cross listings on the financial markets and more.

Commenting on the visit, Khalifa Salem Al Mansouri stressed the importance of opening channels of communication and cooperation between ADX and major international stock exchanges and promoting the Exchange as a preferred destination for listing and trading in the region.

Al Mansouri said: “This, and our other global visits underscore ADX’s international presence and our commitment to implement Abu Dhabi’s Economic Vision to foster sustainable economic development by enhancing the financial services sector in the emirate and providing a competitive business environment that attracts foreign investment.”

 Al Mansouri participated in the MSCI Annual Global Investing Conference and workshops, which took place in London with a group of investment leaders and officials. Discussed at the meeting were sustainable investments, the importance of detailed financial reports that align with the principles of transparency and the requirements of stakeholders.

The conference highlighted the long-term risk to investments and the need to provide new sources of data to maintain the competitiveness of those investments.

Al Mansouri also visited iov42, which specialises in fintech solutions and Blockchain. Iov42 gave an overview on its global identity-centric blockchain operating platform, and its unique architecture and capabilities.

The two parties discussed the possibility of enhancing their relations further in fields of identity management and verification technology, as well as using tokenization to protect digital assets, enhance efficiency, liquidity, while reducing cost. Virtually all other types of traditional assets can be traded after being tokenized.

Al Mansouri added: “ADX continues to enhance its infrastructure by embracing modern technology solutions that are a key attraction for both companies and investors. We proactively participate in various international forums and meetings to learn about the latest international developments in this field, and assess ways to apply them to enhance ADX’s leading position in the region.”

The Abu Dhabi Securities Exchange is one of the preferred markets for British investors in the region. The number of British investors in the Exchange by the end of the first quarter of 2019 reached 3052 investors of which 922 are institutional investors whereas 2130 are individuals. Furthermore, the total trading value of British investors (Buy + Sell) reached Dhs 3 Billion during the first quarter of 2019 while their net investment reached Dhs860 million thus representing the highest net investment among foreign investors during the first quarter of the current year.

Abu Dhabi Securities Exchange (ADX) was established on November 15 of the year 2000 by Local Law No. (3) Of 2000, the provisions of which vest the market with a legal entity of autonomous status, independent finance and management. The Law also provides ADX with the necessary supervisory and executive powers to exercise its functions.

ADX is a market for trading securities; including shares issued by public joint stock companies, bonds issued by governments or corporations, exchange-traded funds, and any other financial instruments approved by the UAE Securities and Commodities Authority (SCA).

In 2014, ADX was upgraded to ‘Emerging Market’ status by both MSCI and S&P Dow Jones. ADX was already classified as an Emerging Market by FTSE in 2009 and in 2011 by S&P and Russell Investments.