Abu Dhabi Securities Exchange (ADX) and Deutsche Bank have signed a custody agreement whereby Deutsche Bank will provide custody of ADX-listed shares to institutional investor clients. This will encourage and facilitate further international investment in Abu Dhabi which will lead to a broadening of the Exchange’s international investor base.
Commenting on the agreement, Tom Healy, Chief Executive of ADX explained that this would be of particular interest and benefit to foreign investors, saying:
“Abu Dhabi is a rapidly growing economy and ADX is responding to investor demands to diversify the services on offer. Currently, 12% of listed ADX stock is owned by foreign investors and while the execution of trade takes place through brokers, a custodian performs key functions such as opening cash and securities accounts, settlement of trades, collection of dividends and safeguarding clients’ assets. This custody agreement is a further step in providing high quality custodial service and easier access to Abu Dhabi’s capital market.”
Henry Azzam, Deutsche Bank’s Chief Executive Officer for the Middle East and North Africa emphasized the significance of this agreement for the Bank and specifically its Global Transaction Banking business in the Gulf region, saying:
“Deutsche Bank is one of only a few international banks offering its clients local custody services in the UAE. We have worked closely with ADX over the past twelve months to develop a best in class product offering helping our client base gain access to the debt and equity securities listed on the ADX. The UAE’s pioneering economic initiatives is generating strong interest from both our regional and international clients particularly in Abu Dhabi listed securities. “
“Increasing foreign investment in Abu Dhabi’s capital market is an integral part of the government’s strategy. Foreign, particularly institutional, investment is vital for it’s long term sustainability hence we welcome Deutsche Bank as one of the leading custodians globally to assist with the continued globalization of the investor base of the ADX market,” concluded Mr Healy.