Chief Executive of Abu Dhabi Securities Exchange (ADX) Rashed Al Blooshi said that strengthening partnership with listed companies is part of ADX’s strategic aims - in addition to improving the infrastructure of the Exchange.
ADX has recently launched a Blockchain-based e-voting service to allow shareholders of listed companies to vote in annual general meetings, and continues to work towards increasing institutional investment in the Exchange. ADX has also been working to accelerate the process of granting licenses of financial services following the decision of the Securities and Commodities Authority (SCA) towards transferring the licensing of such services to the financial markets in the UAE.
As part of the annual forum for public shareholding companies, Al Blooshi said that “ADX seeks to continue distributing cash dividends for all listed companies during the next year”.
ADX has distributed around 22 billion Dirhams of cash dividends for the last year, out of 39.4 billion Dirhams of total profits achieved by listed companies.
“ADX offers services that are aimed precisely towards serving listed companies, shareholders, and its stakeholders. ADX continues to maintain communication between companies and shareholders, hence it will be launching a public awareness campaign to reinforce transparency and disclosure in accordance with global best practices, “he added.
Saif Sayah Al Mansoori, Senior Head of Listed Companies Affairs department at ADX, gave a welcoming speech to the companies participating in the forum while highlighting that this annual event has come a long way in supporting and strengthening the relations between ADX and its listed companies.
Al Mansoori also emphasized that well-grounded decision making requires extensive consultation and most importantly effective communication which is the main purpose of the forum.
During the event, representatives of ADX’s Listed Companies Affairs department, Clearing & Settlement department, Market Operations & Surveillance department, and Information Technology department delivered a comprehensive presentation on the new services offered by ADX. They also familiarized the attendees with ADX new website which meets the needs of companies, investors, as well as analysts.
According to official statistics, the market capitalization of listed companies in ADX stood at 426 billion Dirhams by the end of September, and the owners’ equity reached 305 billion Dirhams.
ADX will also be arranging another forum in November for listed companies from other Emirates.
About Abu Dhabi Securities Market (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:
- Provide opportunities to invest savings and funds in securities in order to benefit national economy.
- Ensure the soundness and accuracy of transactions and to ensure the interaction between demand and supply in order to determine prices.
- Protect investors through establishing fair and proper dealing principles between various investors.
- Impose stringent controls over securities transactions to ensure sound and conduct procedure.
- Develop investment awareness by conduction studies and issuing recommendations in order to ensure that savings are invested in productive sectors.
- 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 2015, ADX had 71 listed securities with a market capitalization of AED 447 billion (USD 122 billion). Those securities include 66 public joint stock companies, 2 private joint stock companies, 1 Exchange Traded Fund (ETF), 1 Abu Dhabi Government
Fund, 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.
