Foreign Investors Total Trading Value in ADX Reaches AED 26.9 Billion During First Half of 2017

Total trading values (buy and sell) of foreign investors in ADX reached AED 26.9 billion Dirhams during the first half of 2017 – thus representing %47.3 of the total trading value on ADX during the same period which amounted to around AED 56.5 billion. 

Foreign non-Arab investors topped the list with 15.9 billion Dirhams of trades, followed by Arab investors with AED 6.5 billion, and GCC investors with AED 4.4 billion.

“The investment environment in ADX during the past few years have played a great role in increasing the competitiveness of the Exchange for all segments of investors. ADX main strategic goals are to increase market cap and product range, attract & activate wider range of investors in the framework of enhancing the competitive environment for doing business and attracting investment into the Emirate.” said Rashed Al Blooshi, ADX Chief Executive.

Al-Blooshi also added that ADX will launch new services later this year, including the technical short-selling service.

The total number of investors in ADX by the end of first half of 2017 reached 961,000 investors. ADX has issued 2276 new investor numbers, 2020 for individuals and 256 for institutions.

About Abu Dhabi Securities Exchange (ADX)

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.

These functions are:

1. Provide opportunities to invest savings and funds in securities in order to benefit national economy.
2. Ensure the soundness and accuracy of transactions and to ensure the interaction between demand and supply in order to determine prices.
3. Protect investors through establishing fair and proper dealing principles between various investors.
4. Impose stringent controls over securities transactions to ensure sound and conduct procedure.
5. Develop investment awareness by conduction studies and issuing recommendations in order to ensure that savings are invested in productive sectors.
6. Ensure financial and economic stability and develop trading methods in order to ensure liquidity and stability of prices of Securities listed on the market.

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).

At the end of 2016, ADX had 71 listed securities with a market capitalization of AED 475 billion (USD 129 billion).  Those securities include 66 public joint stock companies, 2 private joint stock companies, 1 Exchange Traded Fund (ETF), 1 Abu Dhabi Government bond, and 1 convertible bond.   ADX listed companies are allocated in nine sectors; Banking, Real Estate, Consumer Staples, Investment and Financial Services, Industrial, Telecommunication, Services, Energy, and the Insurance sector. 

ADX allows for investors to trade through any of the registered brokerages at the exchange through advanced electronic automated services. ADX has also signed a number of agreements with major financial institutions to provide for custody services, including renowned international corporations; namely the National Bank of Abu Dhabi (NBAD), HSBC, Standard Chartered, Deutsche Bank and Citi Banking Group.

ADX goals are in line with Abu Dhabi Government Economic Vision 2030.  The 2030 economic plan plays a vital role in ADX strategy since it places the financial market in the context of economic and social development.  The development would be through diverting savings towards investment in the various economic sectors and developing the financial infrastructure of Abu Dhabi to transform the emirate into one of the leading finance and services center in the region.

In 2014, ADX was upgraded to ‘Emerging Market’ status by both MSCI index (Morgan Stanley Capital International) and S&P Dow Jones, thus greatly increasing the likelihood of inward global investment flows. ADX was already classified as an Emerging Market by FTSE in 2009 and in 2011 by S&P and Russell Investments. 

In 2015, ADX won the Most Innovative Exchange GCC 2015 Award.  The award, given by Capital Finance International, celebrates achievement, innovation from an international perspective, recognizing organizations with innovative technology products backed by strong management, excellent service standards and sound business models. Capital Finance International is a leading print journal and online resource reporting on business, economics, and finance.