Abu Dhabi, Luxembourg to enhance ties and support sustainable finance

The Abu Dhabi Securities Exchange (ADX) and the Luxembourg Stock Exchange (LuxSE) announced the signing of a Memorandum of Understanding (MoU) between the two parties.

The purpose of the MoU is to establish a framework of cooperation between the two institutions to facilitate the dual listing of a broad range of financial instruments, maximise access to European, Middle Eastern and international investors for the parties’ respective issuers, expand pre- and post-listing services, provide access to training programmes to foster awareness around sustainable debt products, and leverage ESG data to enhance issuer and investor engagement both in the Middle East and Europe.

Abdulla Salem Alnuaimi, Chief Executive Officer of ADX, said: “Forming partnerships and building relationships with exchanges is a key tenet of ADX’s growth.

Through this MoU, we are forging deeper ties with LuxSE and demonstrating our ongoing commitment to collaboration, supporting sustainable finance, sharing global best practice, encouraging bilateral investments, and broadening both exchanges investors’ base of bond and sukuk issuers in ADX.

We will continue to leverage its diversified product offering, active equity capital markets and extensive network to enhance liquidity and activity on our growing exchange.”

“We are delighted to formalise our cooperation with the Abu Dhabi Securities Exchange through this Memorandum of Understanding. Cross-regional collaboration plays a pivotal role in creating interconnected and more sustainable capital markets, and we look forward to working with our counterparts in the United Arab Emirates to create new opportunities for growth, innovation, and sustainable economic development in the region,” commented Julie Becker, CEO of LuxSE.

As the world’s leading exchange for the listing of international debt securities, LuxSE has a strong focus on international cooperation and sustainable finance, working closely with selected exchanges around the world to create more connected capital markets and facilitate access to the international investment community for issuers across the world.

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.

On 17th March 2020, ADX was converted from a “Public Entity” to a “Public Joint Stock Company PJSC” pursuant to law No. (8) of 2020. ADX is part of ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy.

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). ADX is the second largest market in the Arab region and its strategy of providing stable financial performance with diversified sources of incomes is aligned with the guiding principles of the UAE “Towards the next 50” agenda.

The national plan charts out the UAE’s strategic development scheme which aims to build a sustainable, diversified, and high value-added economy that positively contributes to transition to a new global sustainable development paradigm.

The Luxembourg Stock Exchange (LuxSE) is the gateway to access international investors. With 41,000+ listed securities, including 37,000 debt instruments, from 1,800 issuers in 100 countries, LuxSE is the world’s leading exchange for the listing of international debt securities, and offers a unique and integrated service offering covering listing, trading and information services.

In 2016, LuxSE established the Luxembourg Green Exchange (LGX) and became the first exchange in the world to operate a platform dedicated entirely to sustainable securities. LGX has become a meeting place for issuers of sustainable products and impact-conscious investors, and encompasses more than 1,700 sustainable bonds, representing a total value of EUR 910 billion from 270 issuers in 50 countries. In 2020, LuxSE established the LGX Academy and the LGX DataHub to facilitate access to sustainable finance education and structured sustainability data.

Abu Dhabi Securities Exchange (ADX) announced earlier that it has signed an agreement with Astana International Exchange (AIX) for the inclusion of AIX as the fourth member of the Tabadul Digital Exchange Hub. Other members of Tabadul include Bahrain Bourse (BHB) and Muscat Securities Market (MSX).