Abu Dhabi Securities Exchange and Shurooq sign deal to attract listings from Sharjah

The agreement will also allow the organisations to boost co-operation in investor services

January 7, 2014 (Abu Dhabi) The Abu Dhabi Stock Exchange  January 7, 2104. (Sammy Dallal / The National)

Abu Dhabi Securities Exchange signed a Memorandum of Understanding with the Sharjah Investment and Development Authority (Shurooq) to attract more companies from Sharjah to list on the exchange.

“The MoU serves to stimulate the conversion and listing of existing economic establishments in the Emirate of Sharjah to ADX, while also strengthening levels of co-operation between the two parties in the field of providing investor services,” the two entities said on Tuesday.

The agreement also details the necessary procedures to follow in order to obtain the relevant approvals for the conversion and listing of companies.

“The MoU between Shurooq and ADX reinforces our mission to encourage and support investment opportunities for local companies by going public and entering UAE’s stock market, which is an ultimate catalyst for new business growth and increased competitiveness," Marwan Al Sarkal, executive chairman of Shurooq, said.

Such opportunities also “promote and encourage positive corporate governance principles such as transparency and integrity, as well as empower a more strategic acquisition and distribution of assets and funds across a wide range of sectors," he added.

ADX, which is owned by the state holding company ADQ, has rolled out various measures to attract more foreign capital.

In October, it rolled out a new investment service "covered short selling", to support the exchange’s strategy of diversifying investment and providing investors with a broader range of hedging mechanisms.

“Abu Dhabi is becoming increasingly successful in attracting a more diverse range of investment firms and investor profiles, supported by the exchange’s growing liquidity, raising foreign ownership limits, customer focus and robust and transparent regulations," Saeed Al Dhaheri, chief executive of ADX, said.

The bourse's market capitalisation stands at more than Dh700 billion, up from Dh500bn at the end of June after the completion of Abu Dhabi Power’s reverse takeover of Taqa on July 1.

The world’s top 25 asset managers are registered investors on the bourse, ADX said in July.

EDITOR'S PICKS
NEWSLETTERS