Abu Dhabi Exchange (ADX) launched a new market infrastructure that introduces more diverse product offerings to attract retail investors as the emirate seeks to boost its capital markets.
The "New ADX Group" business model and its two subsidiaries announced on Monday the introduction of new post-trade capabilities and services to allow clearing and settlement platforms to operate at a faster rate, encouraging a wider group of investors to participate.
The post-trade divisions performing these functions under the model are Abu Dhabi Clear (AD Clear) and Abu Dhabi Depository (AD CSD), aimed at boosting market efficiency to facilitate a greater inflow of capital. The core platform powering these trading engines that uses technology developed by New York's online stock exchange Nasdaq, ADX's chief executive said, went into effect on January 20 and has already delivered on its promise.
"In terms of connectivity ... it's increased by more than 400 per cent," Abdulla Al Nuaimi told The National in an interview at the model's launch event in Abu Dhabi. "This gives new capabilities for our shareholders, for our investors."
The engine is especially important for algorithmic and high-frequency trading, he added.
How it works
The two subsidiaries integrate several asset classes such as equities, exchange traded funds (ETFs), derivatives and debt instruments on to a single platform. Algorithms for high-frequency trading (HFT) will be updated for greater optimisation in addition to the introduction of new and more sophisticated order types for greater trading flexibility.
The goal of the new infrastructure is to deepen the reach of the already global ADX platform by creating a trading system with greater accessibility and ease of use. By providing quicker and more meaningful information, ADX is widening its appeal to not only institutional investors, but individual retail investors as well, said Mr Al Nuaimi.
Last week, social trading and investing platform eToro added more than 30 companies listed on ADX to its platform after an agreement last year. The broker platform has 38 million registered users from 75 countries, its website says.
Such partnerships are part of ADX's continuing effort to enhance market accessibility and widen participation in Abu Dhabi's capital market, Mr Al Nuaimi said at the time.
The new trading system aims to unlock more investment opportunities and deepen market liquidity by providing investors and industry participants with greater and faster access to market activities and growth sectors in Abu Dhabi, ADX said in a statement.
Capital inflows
ADX, with a market capitalisation of about $779 billion as of Monday, is the second largest exchange in the Arab World after Saudi Arabia's Tadawul. It ranked as the seventh largest globally for emerging market exchanges last year.
It has recorded a surge in initial public offerings in recent years driven by robust investor demand for new issues as well as economic growth in the UAE. Its latest is UAE technology company Alpha Data, which is the exchange's first IPO of the year and aims to raise up to Dh600 million ($163.4 million) by closing on Tuesday in a sign of strong demand for the listing.
Mr Al Nuaimi said 2025 would yield more offerings, with "quite a good number" of IPOs expected this year.
The bourse accounted for 27 per cent of IPO proceeds from the Middle East in 2024. In the past five years, ADX has outperformed the MSCI Emerging markets Index with its general index increasing 86 per cent over that period of time, according to the exchange.
Total trading value last year reached Dh342 billion, a 7 per cent annual increase, while net foreign investment rose to Dh24 billion, the ADX said this month. Foreign investors accounted for nearly 40 per cent of total trading activity, while institutional investors contributed to 80 per cent of the total trade value, the exchange said.
Future capitalisation
Mr Al Nuaimi emphasised that while many focus on the market capitalisation of exchanges to determine their worth, it is their product offerings that demonstrate the value of their capabilities.
"We focus more on the diversification of the exchange," he said. "If you look at ADX over the last two years, we have the [most] active ETF market in the region, we have the [most] active derivatives market in the region."
Mr Al Nuaimi said these markets are gaining momentum, particularly as ADX is constantly exploring ways to improve its ability to disseminate data, which is critical to investors and algorithm traders.
He said: "I see ourselves in the top 10 [globally] with speed," which is already improving across all the exchange's back-end functions.
The ADX chief executive believes generative AI and large language models (LLMs) are further accelerating investor access to information, and once matured will attract a greater number of investors.
"You will not need to read a report of 40 pages. It [generative AI] gives you that snapshot chart," that will allow a wider pool of investors to have trading access and participate, he said.
The next step, he said, is the potential to allow investors to learn from previous trading transactions and more easily develop future strategies. "Now with AI, you will be able to analyse and give yourself more opportunity," said Mr Al Nuaimi.
THE SPECS
Engine: 1.5-litre
Transmission: 6-speed automatic
Power: 110 horsepower
Torque: 147Nm
Price: From Dh59,700
On sale: now
Leap of Faith
Michael J Mazarr
Public Affairs
Dh67
The%20US%20Congress%20explained
%3Cp%3E-%20Congress%20is%20one%20of%20three%20branches%20of%20the%20US%20government%2C%20and%20the%20one%20that%20creates%20the%20nation's%20federal%20laws%3C%2Fp%3E%0A%3Cp%3E-%20Congress%20is%20divided%20into%20two%20chambers%3A%20The%20House%20of%20Representatives%20and%20the%20Senate%3C%2Fp%3E%0A%3Cp%3E-%C2%A0The%20House%20is%20made%20up%20of%20435%20members%20based%20on%20a%20state's%20population.%20House%20members%20are%20up%20for%20election%20every%20two%20years%3C%2Fp%3E%0A%3Cp%3E-%20A%20bill%20must%20be%20approved%20by%20both%20the%20House%20and%20Senate%20before%20it%20goes%20to%20the%20president's%20desk%20for%20signature%3C%2Fp%3E%0A%3Cp%3E-%20A%20political%20party%20needs%20218%20seats%20to%20be%20in%20control%20of%20the%20House%20of%20Representatives%3C%2Fp%3E%0A%3Cp%3E-%20The%20Senate%20is%20comprised%20of%20100%20members%2C%20with%20each%20state%20receiving%20two%20senators.%20Senate%20members%20serve%20six-year%20terms%3C%2Fp%3E%0A%3Cp%3E-%20A%20political%20party%20needs%2051%20seats%20to%20control%20the%20Senate.%20In%20the%20case%20of%20a%2050-50%20tie%2C%20the%20party%20of%20the%20president%20controls%20the%20Senate%3C%2Fp%3E%0A
Panipat
Director Ashutosh Gowariker
Produced Ashutosh Gowariker, Rohit Shelatkar, Reliance Entertainment
Cast Arjun Kapoor, Sanjay Dutt, Kriti Sanon, Mohnish Behl, Padmini Kolhapure, Zeenat Aman
Rating 3 /5 stars
The Lowdown
Kesari
Rating: 2.5/5 stars
Produced by: Dharma Productions, Azure Entertainment
Directed by: Anubhav Singh
Cast: Akshay Kumar, Parineeti Chopra
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
PROFILE OF CURE.FIT
Started: July 2016
Founders: Mukesh Bansal and Ankit Nagori
Based: Bangalore, India
Sector: Health & wellness
Size: 500 employees
Investment: $250 million
Investors: Accel, Oaktree Capital (US); Chiratae Ventures, Epiq Capital, Innoven Capital, Kalaari Capital, Kotak Mahindra Bank, Piramal Group’s Anand Piramal, Pratithi Investment Trust, Ratan Tata (India); and Unilever Ventures (Unilever’s global venture capital arm)
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