ADX, NYSE sign partnership for cross-border listing; here's how it will benefit Abu Dhabi investors

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

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

“The MoU with the NYSE aligns with our strategy towards strengthening connectivity with global financial markets and institutions with the aim of enhancing the participation and seamless access of global investors to the exchange,” Alnuaimi said and noted the agreement provides companies 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 the 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 noted.

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

John Tuttle, vice-chair of the NYSE, underlined 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 the 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 of the United States, even I was surprised to see the dynamism excitement and progress that’s 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 told Khaleej Times.

ADX has recently witnessed significant activity, which has seen increased participation from international and institutional 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 over $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.

Counting the benefits for investors in Abu Dhabi, Tuttle noted that there are more than 2,400 companies from 47 countries listed on the NYSE with a market capitalisation worth $40 trillion.

“The US markets are the largest pool of capital in the world. This is the deepest pool of liquidity and the broadest investor base, and many of the US-based global investors will only invest in US-listed companies. Being able to create mechanisms or pathways for them to invest in Abu Dhabi and the region, and for those companies that are listed here, to ultimately provide them access, at some point, to this broad US investor base, I think, ultimately, provides more opportunity to more investors and creates better outcomes for all. So that’s one of the key focus of the MoU,” Tuttle said while elaborating on how the agreement will drive economic growth.

The ADX and NYSE will explore opportunities to develop ETFs and data and index products, as well as collaborate on sustainability-related initiatives. The agreement follows the announcement last week that ADX has selected the 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 center, enabling dual listings, fostering connectivity, and opening the door to a new era of growth and unlimited potential,” Alnuaimi added.

Tuttle, joined by Margaret Niche, head 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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