Abu Dhabi Securities Exchange (ADX) and Citi have signed a custody agreement whereby Citi 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 investor base.
Tom Healy, Chief Executive of ADX, welcomed the agreement and explained the benefits to the exchange of having more long-term international institutional investors, saying: “Abu Dhabi is a dynamic and growing economy and ADX is responding to investor demands to diversify the services on offer. This custody agreement is a further step in providing high quality custodial services and easier access to Abu Dhabi’s capital market.
“Currently only 9% of investors are from outside the UAE, and only 32% of trading is done by institutional investors. Increasing foreign investment in Abu Dhabi’s capital market is an integral part of our strategy. Foreign, particularly institutional, investment is vital for its long term sustainability hence we welcome Citi as one of the leading custodians globally to assist with the continued globalisation of the investor base of the ADX market”
Mohammed Al-Shroogi, Managing Director for the Middle East and Chief Executive Officer for Citi in the UAE, emphasised the significance of this agreement for the Bank and specifically its Global Transaction Banking business in the Gulf region, saying: "Providing Direct Custody and Clearing (DCC) services to the investors at Abu Dhabi Securities Exchange is an integral part of Citi's ambitious regional expansion plan. We have recently embarked on a strategy to deliver locally our Securities and Funds Services capabilities within the region, while we continue to offer clients in the Middle East our full suite of global financial services and customise financial solutions that meet their growing needs."
Citi has been present in the Arab World for nearly fifty years and continues to view the region as critical to its global franchise. It is currently present in ten Arab countries including Egypt, UAE, Lebanon, Jordan, Tunisia, Morocco, Algeria, Bahrain, Qatar and Kuwait
Citi's Global Transaction Services supports more than 65,000 clients across its global network. As of the third quarter of 2008, it held on average $273 billion in liability balances under administration, and approaching $11.9 trillion in assets under custody and trust. Citi's Treasury and Trade Solutions division of Global Transaction Services offers integrated cash management and trade solutions to meet the evolving needs of corporate, public sector and financial institution clients in over 140 countries.
