Abu Dhabi's ADX signs agreement with Tel Aviv Stock Exchange

The collaboration will allow companies in both countries to access new sources of capital

Following the MoU, ADX became the first Arab exchange to establish commercial ties with Israel. EPA

Abu Dhabi Securities Exchange, the second-largest stockmarket in the Arab region, signed a memorandum of understanding with the Tel Aviv Stock Exchange to foster increased co-operation and boost the growth of capital markets in the UAE and Israel.

The deal will allow ADX and Tase to explore opportunities in "the cross listing of securities, mutual trading by each exchange’s respective members; facilitating investor access to each other’s markets", ADX said in a statement on Wednesday.

"As the relationship between the UAE and Israel enters a new era, the path is open for businesses from both countries to collaborate with each other and unlock commercial opportunities," said Mohammed Al Shorafa, chairman of ADX.

"By offering companies and investors more ways of achieving their business objectives, we are supporting the vision of the peace agreement that should benefit all people across the region.”

The deal also marks the first time an Arab exchange established commercial ties with Israel.

The UAE normalised ties with Israel earlier this year after it signed the Abraham Accord. Following the agreement, both countries have expanded co-operation in sectors ranging from aviation to finance.

The annual exchange of trade between the two countries is expected to reach $4 billion a year, according to Etihad Credit Insurance.

ADX said its agreement will also increase data sharing to develop new products and lead to more innovation in FinTech.

ADX was founded in 2000 is owned by state holding company ADQ.

"Innovation and technology form such a key component of collaboration between the UAE and Israel," said Saeed Al Dhaheri, chief executive of ADX.

"This is especially relevant for ADX because it will encourage entrepreneurial businesses to attract investors and access to capital, a core element of our growth strategy."

Increased co-operation between the exchanges follows a series of agreements between the two countries in the FinTech sector.

Last month, Abu Dhabi Global Market, the capital’s international financial hub, signed agreements with the Israel Securities Authority and Israel's biggest lender, Bank Hapoalim, to develop the FinTech sector.

Dubai International Financial Centre also signed a MoU with Bank Hapoalim to step up knowledge sharing and improve cross-border innovation.