Rising ADX influence in global markets highlighted at CFO conference in Dubai

Inayat-ur-Rahman, Business Editor

Abu Dhabi Securities Exchange (ADX) is quickly transforming the financial landscape in the UAE, attracting global investors and solidifying Abu Dhabi’s ambitions as a global financial hub.

At the CFO conference Middle East 2024, held in Dubai, ADX Chief Strategy and Transformation Officer Matthias Buchler joined Yasir Gadit, Regional Partner at athGADLANG, for an in-depth Fireside Chat titled “Opportunities in Abu Dhabi’s Evolving Capital Markets.” The discussion shed light on ADX rising influence, IPO growth, and new sustainability standards, offering an inside look at Abu Dhabi’s financial vision.

For Abu Dhabi, the ambition is clear: to become the “capital of capital.” As Buchler shared, “We are now the 20th largest exchange in the world by market cap, with over a million investors—40% of whom are international. ADX isn’t just a regional exchange; it is a gateway for global capital.” Buchler, who brings over 17 years in strategy and transformation, emphasized ADX role in fostering an ecosystem where investors and businesses connect, sharing Abu Dhabi’s growth story. For many, listing on ADX isn’t just a move for capital, he explained; it’s about visibility, transparency, and long-term credibility.

A testament to ADX appeal, IPO activity has skyrocketed. In 2023, ADX ranked as the third-largest IPO market globally, attracting major listings and considerable international attention. With the anticipated Lulu Group IPO projected to raise Dhs5 billion and shares expected at Dhs2 each, Buchler highlighted ADX role in bridging high-quality companies with global investors. “Oversubscription is common, and the interest we’re seeing—particularly with a major player like Lulu—reinforces ADX as a market leader and gives Abu Dhabi an edge in the capital markets,” he noted.

For Gadit, ADX’s impact is equally clear. As a seasoned finance professional, he emphasized how such listings underscore ADX’ credibility. “When companies of this caliber choose ADX, it shows investors worldwide that Abu Dhabi is serious about leading in financial markets,” Gadit said, applauding ADX strategy of integrating regional economic goals with a global perspective.

Beyond IPOs, ADX has also broadened its appeal to a diverse investor base. The success of the Pakistani ETF on ADX, up 42% this year, speaks to the active role the UAE’s Pakistani community plays in the market. With a significant expatriate base, ADX offers a wide array of options that resonate with both resident and non-resident investors. “The Pakistani community is a vibrant part of ADX growth story,” Buchler explained. “Their engagement shows how ADX connects regional and global economies in a meaningful way.”

Environmental, Social, and Governance (ESG) standards are also reshaping ADX landscape. Under Buchler’s leadership, ADX has implemented 29 ESG standards that all listed companies are required to report on annually, further aligning Abu Dhabi with global sustainable finance trends. Buchler shared that ADX now lists $7 billion in green instruments, positioning it as a leading player in green finance. “For international investors, ESG isn’t just a factor—it’s a priority,” he said, adding that ADX’s global roadshows are helping to build awareness and educate companies on the importance of ESG.

Gadit noted that this commitment to ESG enhances ADX’s reputation internationally. “ADX is setting the standard in the region, demonstrating that Abu Dhabi is serious about sustainability and compliance,” he observed. “This isn’t just a checkbox; it’s an opportunity for companies to align with global expectations and add value for investors.”

As the conversation drew to a close, Gadit acknowledged the challenges that come with enforcing such standards, especially as ADX increasingly considers making compliance mandatory. ADX is gradually moving toward more stringent ESG regulations, according to Buchler, while giving companies time to adapt to these expectations.

For both Buchler and Gadit, ADX is not only fulfilling its role as a regional exchange but is evolving into a global financial conduit that enables Abu Dhabi’s vision. “The groundwork is there,” Gadit remarked. “With each new milestone, ADX is connecting more investors, more opportunities, and building Abu Dhabi’s profile as a financial leader on the world stage.”

The CFO Conference Middle East 2024 highlighted how ADX is not just shaping Abu Dhabi’s economic ambitions but reinforcing the UAE’s status as a dynamic, resilient player in global markets.

Meanwhile, The Institute of Chartered Accountants of Pakistan (ICAP) recently hosted the 4th edition of the CFO Conference Middle East 2024 in Dubai. This highly anticipated event attracted CFOs and business leaders from across the region to discuss the growing challenges in today’s rapidly evolving economic, technological, and environmental landscape.