Abu Dhabi Securities Exchange (ADX), celebrated its 19th anniversary. The past year has seen many achievements, which has strengthened ADX’s position among the leading financial markets in the region and the world, moving up international best practices of disclosure and transparency.
ADX has attained incredible progress over the last 19 years since it was established at both global and regional levels. It was granted Emerging Market status by FTSE in 2009, Standard & Poor’s, and Russell Investments in 2011 and Morgan Stanley Capital International and Standard & Poor’s Dow Jones in 2014, as ADX progressed up international standards. This momentum has created a dynamism attracting a large and new group of investors, with building services that provide flexibility, transparency and efficiency that make it easier for customers and institutions to do business and invest easily.
H.E. Khalifa Salem Al Mansouri, Chief Executive of ADX, said: “At ADX, this occasion marks a new chapter as we gradually progress the market into a new phase of shifting from regional to global leadership and our 19 years also marks the launch our new strategy ADX One. ADX is playing an essential role in enhancing the Emirate’s global position, helping to realise sustainable development goals for the nation and deliver prosperity for the UAE and future generations of Emiratis. We are gearing up for the UAE’s Golden Jubilee, making contributions towards the UAE Vision 2021. We are implementing our wise leadership’s vision for the future, as we implement the Fourth Industrial Revolution, Artificial Intelligence and digital transformation. We are also using this 19th anniversary to look forward to our ‘Shaping the Twenties’ strategy, which aims to make Abu Dhabi one of the best cities in the world to invest in.”
The market has used its key status as a core UAE institution to lead the implementation of the Year of Tolerance by our wise leadership. The International Day for Tolerance was celebrated by ADX through ringing the trading hall bell, in addition to planting the Ghaf tree in the courtyard of the headquarters, as the tree is considered to be an authentic national symbol of the UAE and the main component of the slogan “Year of Tolerance” Logo.
Listings
The year 2019 has been a strong year for listings, with the ADX launching a series of listings this year, the latest of which was in November. The second tranche of Sukuk was listed on Aldar Properties, one of the largest real estate investment companies in the UAE, worth USD$ 500 million. Aldar Investment Sukuk and Ireland’s Dublin Stock Exchange together carried out a dual listing of the largest medium-term bond program ever issued by the Emirate of Abu Dhabi valued at USD$10 billion. The first issuance of the Sukuk of ESIC Sukuk Ltd was also carried out, which was worth a significant USD$600 million. The market also listed sovereign bonds issued by the Maldives Ministry of Finance and Treasury on behalf of the Government of Maldives for the Abu Dhabi Fund for Development, a listing that is the first of its kind in the UAE and the region.
Regulations
The year also saw an important regulatory decision from ADX, with the announcement of a trading commission fees reduction of 50% up to 90%, which made ADX amongst the MENA region’s least expensive stock markets for trading commissions. This initiative is designed to reduce costs on investors, build confidence, increase liquidity and attract more investors. ADX was a leading signatory of the Abu Dhabi Declaration on Sustainable Finance, committing to enhancing the positive economic, social and environmental impacts and promote sustainable financing and long-term investment to serve the UAE economy. This is in line with the UAE’s efforts to achieve the UN Sustainable Development Goals. ADX issued a manual on environmental and social disclosure standards to enhance the sustainability of listed companies and also made improvements and advancements to its electronic disclosure system and mechanisms, employing the latest technologies and best practice applied in global exchanges.
Digital Transformation
2019 has been a big year for ADX acceleration of its digital transformation. Their accomplishments were showcased at FinTech Abu Dhabi 2019, an event where ADX were Platinum sponsor. Here, ADX demonstrated its ‘Arqam’ platform, a business management tool powered by Artificial Intelligence, which can be utilized for quick access to multiple sources of information and provides computerised advice on trading to investors. The market also introduced the ‘ADX Digital Wallet’ Powered by Payit and ‘Sahmi’ platform that provides information to investors in an easy and secure way by linking it to the Smart Abu Dhabi Digital Entry Initiative. ADX also reached the finals of the ‘Smart City Middle East Awards’ with Sahmi, under the ‘Smart Government Administration’ category.
Culture and Education
This year ADX also announced the establishment of “Zayed Center for Excellence in Financial Research” at the Higher Colleges of Technology in Abu Dhabi. The Center aims to cooperate with the Higher Colleges of Technology in the development of research related to financial services in addition to introducing students to financial services research and prepare them to work in this sector. The Majalis Affairs Office at the Abu Dhabi Crown Prince’s Court coordinated with Abu Dhabi Securities Exchange (ADX) carried out two informative on Capital Markets and Returns. During the lectures, ADX briefed investors and the public about its new market products and services.
