The Abu Dhabi Securities Exchange has signed preliminary agreements with Muscat bourse and the sultanate’s Clearing and Depository Company that allow dual listing of Muscat-traded companies in Abu Dhabi.
The agreement between Muscat Securities Exchange and the ADX, the Arab world’s second-largest exchange by market value, sets out the legal foundations for dual listing of securities across the two markets, the Abu Dhabi Media Office said on Wednesday.
The pact “unifies and defines the required operational, administrative and technical procedures to achieve effective cooperation and coordination”, it said.
The agreement was signed on the sidelines of President Sheikh Mohamed's visit to Oman.
In a separate deal with Muscat Clearing and Depository Company, the ADX agreed to further develop clearing and central depository functions in the two markets.
The initial agreement will allow each party to obtain the required permits and approvals to collaborate and to establish joint working committees on issues of common interest, the Media Office said.
As part of the growing relationship between the two nations, the MSX will be joining the Tabadul, a platform created by ADX and Bahrain Bourse to connect regional exchanges.
Developed on the mutual market access model, Tabadul enables investors to trade directly on the onboarded exchange through local authorised brokers.
Muscat-listed companies trading on the platform along with securities listed on ADX and BHB are steps that will "promote economic growth, build regional partnerships, increase liquidity and drive sustainable growth in stock markets in the region", according to the Media Office.
“The signing of the MoU between ADX and MSX, which is aligned with the GCC’s efforts in promoting financial integration, aims to further develop the investment and capital markets landscape between the two countries by adopting the highest standards of regulatory best practices in both markets," Saeed Al Dhaheri, managing director and chief executive of ADX, said.
"ADX will continue in its successful efforts to date in establishing close working relationships, co-operation and collaboration with regional and international financial markets."
Unlike capital markets in the US and Europe that have slumped amid inflation woes and fears of a looming recession, the UAE markets have remained steady. A string of initial public offerings has significantly improved liquidity and foreign investment on the ADX, anchoring it as one of the world’s best-performing equity markets in 2021.
ADX, which has a market value of more than Dh2.2 trillion ($604bn) as of Wednesday, has advanced almost 15 per cent since the beginning of the year.
The bourse is home to some of the biggest names in the UAE corporate world including International Holding Company and its subsidiary Alpha Dhabi Holding, Abu Dhabi National Oil Company, First Abu Dhabi Bank, property developer Aldar and telecoms company e&, formerly known as Etisalat.
Haitham Al Salmi, chief executive of the MSX, said all concerned parties will benefit from the latest agreements that can be built upon in various sectors.
The pacts will "open the way to create many investment opportunities for all investors [and] support economic development", he said.
The MSX is teaming up with UAE-based Al Ramz Corporation and the Oman's Ubhar Capital to launch capital markets initiatives in the sultanate, the companies said in a separate statement.
Al Ramz and U Capital will develop plans aimed at improving and diversifying the trading activity on Oman’s capital markets, in line with the country's Vision 2040.
Separately, Abu Dhabi's ADQ, one of the region's biggest holding companies, said it identified Dh30bn in investment opportunities in Oman.
ADQ discussed a range of investment options with state-owned Oman Investment Authority (OIA), across a variety of sectors as part of efforts to increase economic cooperation and trade between the nations, the company said in a statement on Wednesday.
ADQ, which recently signed a Dh10bn partnership agreement with OIA to boost investments in sectors of mutual priority and interest, is looking at opportunities to invest in solar and wind, hydrogen, green aluminium and steel, as well as water and electricity transmission lines.
The company is also exploring investment in other sectors including food and agriculture, logistics, technology and healthcare.
"This is in line with ADQ’s ambitions to expand its power, water and industrial platforms throughout Oman to capture synergies that achieve long-term and sustainable value creation for both nations," the company said.
ADQ and Oman Information Communication and Technology Group, a wholly owned subsidiary of the OIA, also signed an initial agreement to establish a Dh592 million venture capital fund to invest in high-growth technology companies in Oman, it said on Wednesday.
“Today’s engagement builds on our recent efforts and commitment to develop tangible investment partnerships in key markets, such as Oman, that complement our investment strategy and growth aspirations," Mohamed Al Suwaidi, managing director and chief executive at ADQ, said.