MoU signed for dual-listing of Pakistani firms on ADSM

ABU DHABI — After signing an MoU with Pakistan's Central Depository Company (CDC), Abu Dhabi Securities Market (ADSM) will next month hold roadshows in Karachi and Lahore to attract companies for dual-listing.

By Haseeb Haider

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Published: Tue 19 Sep 2006, 9:59 AM

Last updated: Sat 4 Apr 2015, 4:22 PM

The ADSM signed its first non-GCC MoU with CDC of Pakistan, in a move that further support's ADSM's drive to encourage increased trading activity from international investors as well as foreign companies looking to enlist.

With the signing of this agreement, new dimensions of business will be opened up in capital market. Pakistani companies have now got another channel for listing, while the UAE-based investors will be able to consider a broader investment spread by investing on equities listed on Pakistani bourses through online trading.

It will take a little time to negotiate the technical modalities of the MoU to allow the UAE-based national as well as expatriate investors including Indians to trade in stocks listed in Pakistan as well as Pakistani scrips on the ADSM.

The ADSM currently has more than 2,200 Pakistani investors registered, with investments worth Dh50 million and it is understood that about ten Pakistani companies have received approval for dual-listing in the UAE, in addition to their home-base listing in Pakistan. The CDC is Pakistan's central securities depository for the country's three stock exchanges in Karachi , Lahore and Islamabad .

Rashed Al Baloushi, Acting Director General of ADSM talking to Khaleej Times explained that this move is not only significant to Abu Dhabi , but also to the UAE as a whole, and to Pakistani investors in particular as both the UAE and Pakistan have growing political and economic relations. He also highlighted the importance of such agreements and the role they play in securing market growth in the UAE.

"This day marks a turning point in the growth of ADSM," said Al Baloushi. "We have already had successful experiences with Muscat and Doha." "ADSM will now become a gateway for companies wanting visibility in UAE, Oman and Pakistan . We hope it will not stop there."

He noted that Abu Dhabi is a significant investor in Pakistani companies, citing this as confirmation that this move is timely and will only further fuse the two markets.

"We also look forward to working closely with the three Pakistan stock exchanges as we implement our best practices programme and continue to improve the regulation and governance standards in the UAE financial markets." Hanif Jakhura, Chief Executive of the CDC added that, "Not only are there a large number of companies in Pakistan who want to list in the UAE, but we are also planning diverse investment opportunities through listed bonds, mutual funds, open- and closed-ended funds."

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