Abu Dhabi Securities Exchange agrees to associate with Saudi Arabia Tadawul

Abu Dhabi Securities Exchange, the emirate's stock exchange, has agreed to be the sole entity responsible for clearing UAE securities traded in Saudi Arabia, as part of efforts to encourage the practice of dual listing of shares in regional scholarships.

ADX has signed a memorandum of understanding with the Securities Depository Center Company (Edaa) in Saudi Arabia, which holds the entire Tadawul Stock Exchange in the Kingdom.

As part of the deal, ADX will exclusively provide custody, registration, clearing and settlement services for UAE securities traded on Tadawul, the parties said in a statement on Saturday.

The agreement aims to "strengthen bilateral cooperation in the dual listing of securities in the Saudi and UAE financial markets," the statement added.

Dual listing can help attract capital from more markets and increase the visibility of a publicly traded company to more investors.

According to ADX, the number of Saudi investors in ADX rose to 147,412 by the end of 2018, including 147 institutional investors. Saudi investors accounted for a total market value of 1.6 billion dirhams in 2018.

"This agreement will provide an attractive platform for Saudi, Emirati and foreign investors, thanks to the stability and competitiveness of investments in the region's financial markets," said Khalifa Salem Al Mansouri, General Manager of ADX. .

The memorandum of understanding allows the exchange of information and data relating to stock exchange transactions between Tadawul and ADX, as well as the transfer of securities and the updating of securities ownership records in each country. said both parties.

ADX had previously signed an agreement with Tadawul to enhance mutual cooperation through the exchange of information and skills. The latter agreement is part of broader efforts to strengthen the governance and transparency of the stock exchange listing process and to standardize operational and technical procedures.

"The partnership stems from our mutual commitment to facilitating depositary services between the Saudi and UAE financial markets by providing all necessary facilities to enable the depositing, retention and maintenance of property records between the two parties", added Mamdooh Al Sedairy, executive director of Edaa.

The agreement is also part of the cooperation efforts between the United Arab Emirates and Saudi Arabia, overseen by the Saudi Arabia-United Arab Emirates Coordinating Council, a group of officials from both countries formed last year. .