ADX and NYSE sign partnership for cross-border listing; This is how it will benefit Abu Dhabi investors – News

The Abu Dhabi Stock Exchange (ADX) and the New York Stock Exchange (NYSE) have signed a memorandum of understanding (MoU) to collaborate on several key business activities, including dual listing of companies on both exchanges.

Abdulla Salem Alnuaimi, CEO of ADX, said Khaleej Times that the MoU is a “testimony” of the confidence that international financial markets have in the UAE’s capital markets and in the country’s stable economy and diversified investment ecosystem.

“The MoU with the New York Stock Exchange aligns with our strategy to strengthen connectivity with global financial markets and institutions with the aim of improving the participation and seamless access of global investors to the exchange,” Alnuaimi said, noting that The deal provides the companies with greater visibility and access to a larger pool of investors.

“The MoU also allows both parties to collaborate on a number of key business activities, including dual listing of companies on both exchanges, exploring opportunities to develop ETFs and data and index products, as well as collaborating on sustainability-related initiatives. “. Alnuaimi pointed out.

While NYSE is the largest stock exchange in the world, ADX is the second largest market in the Arab region.

John Tuttle, vice president of the New York Stock Exchange, stressed that the agreement further strengthens a “productive partnership” with ADX.

“As we look to make our markets more accessible to more people and ultimately provide more opportunities, we see exciting things happening here in Abu Dhabi and at ADX. As someone who likes to have a fairly informed view of the financial world outside the United States, even I was surprised to see the dynamism, enthusiasm and progress being made in Abu Dhabi and the region. And we want to be part of that. Signing the MoU with Abu Dhabi was a natural fit for us,” Tuttle said. Khaleej Times.

ADX has recently witnessed significant activity, which has seen increased participation from institutional and international investors, including in IPOs, listings and new product launches. This year, ADX listed 13 securities, including three IPOs that attracted significant global demand and raised more than $5.4 billion. With the recent listings of ADNOC Gas ($2.5 billion), Presight AI ($500 million) and ADNOC L&S ($769 million), the Exchange is once again at the forefront of the Mena IPO market in 2023.

Tallying the benefits for investors in Abu Dhabi, Tuttle noted that there are more than 2,400 companies from 47 countries listed on the New York Stock Exchange with a market capitalization valued at $40 trillion.

“US markets are the largest reserve of capital in the world. This is the deepest liquidity pool and broadest investor base, and many of the US-based global investors will only invest in US-listed companies. Being able to create mechanisms or avenues for them to invest in Abu Dhabi and the region, and for the companies listed here, to ultimately give them access, at some point, to this broad base of American investors, I think ultimately , provides more opportunities for more investors and creates better outcomes for everyone. That is one of the key points of the MoU,” Tuttle said as he explained how the agreement will boost economic growth.

ADX and NYSE will explore opportunities to develop ETFs, index and data products, as well as collaborate on sustainability-related initiatives. The deal follows the announcement last week that ADX selected ICE Global Network to offer global institutional investors direct access to ADX market data and order entry. The MoU also builds on ICE’s broader commitment to the region, including its collaboration with Abu Dhabi National Oil Company to launch ICE Futures Abu Dhabi in 2021.

“This collaboration represents a key moment in ADX’s journey to reinforce Abu Dhabi’s position as a thriving global financial centre, enabling dual listings, fostering connectivity and opening the door to a new era of growth and unlimited potential,” added Alnuaimi. .

Tuttle, accompanied by Margaret Niche, Director of ICE Global Network, rang the ADX opening bell to celebrate the signing of the MoU, as well as the addition of ADX to the ICE Global Network.

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