Abu Dhabi Securities Exchange (ADX): Most Innovative Exchange GCC

After securing its place on the influential MCSI Emerging Market Index in 2014, 1,158 foreign institutional investors opened accounts to trade on the Abu Dhabi Securities Exchange. Now, a number of regulatory changes are in the works that will facilitate the creation of new financial instruments, adding liquidity to the market and helping the exchange integrate more closely into the global marketplace.

Established in 2000, the Abu Dhabi Securities Exchange has already established a well-earned reputation as a premier venue for investors aiming to catch a ride on the buoyant UAE economies. The exchange has proved resilient in the face of low oil prices and other setbacks. Earlier this year, the exchange entered into discussions with two financial institutions to act as market makers. The National Bank of Abu Dhabi (NBAD) is currently the only ADX market maker.

The exchange is proactively pursuing new listings from large and mid-sized companies for both its main board and the secondary market. Though the number of IPOs has been small, it is widely expected that 2016 will see privately-held companies reawaken to the many benefits a public listing can bring.

With 71 listed securities (66 public joint stock companies, 2 private joint stock companies, 1 ETF, 1 convertible bond, and 1 Abu Dhabi Government bond), the Abu Dhabi Securities Exchange represents most major sectors of the UAE economy and, as such, offers investors a unique – and well-diversified – picture of the local business scene. The CFI.co judging panel commends the Abu Dhabi Securities Exchange for its stalwart dedication to not just excellence in the delivery of investor services, but also to innovation. Serving investors with state-of-the art tools and platforms, the Abu Dhabi Securities Exchange is declared winner of the 2015 Most Innovative Exchange GCC Award.

ADX Most Notable Achievements

• Launch of Smart Kiosk (SAHMI). The Kiosk offers an array of electronic services that include the issuance of a new investor number, modification of existing investors’ details, obtaining financial reports and investment statements….etc (first in MENA)
• Adoption of XBRL (first in GCC)
• Implement automatic monitoring system (Smart System) which can monitor and record automatically transactions and other trading activities on the Exchange (first in GCC).
• Disclose, on ADX website, of names of shareholders owning 5% or more of the share capital of any listed company (first in GCC)
• Listing of Shares of Private Joint Stock Companies (first in GCC)
• Listing of ETF (first in GCC)
• Being Upgraded to Emerging Market status by MSCI (first, with Qatar, in world since Emerging Market status was established by MSCI in 2007)