ADX signs technology support deal with Borsa Istanbul

The Abu Dhabi Securities Exchange is collaborating with global bourses to 'significantly increase market capitalisation'

The Abu Dhabi Securities Exchange has had a string of initial public offerings in recent months. Reuters

The Abu Dhabi Securities Exchange and Borsa Istanbul will collaborate on technology infrastructure as the UAE and Turkey strengthen ties after the two-day visit of President Recep Tayyip Erdogan to the Emirates this week.

Borsa Istanbul will provide IT consultancy services and technology support to the ADX as part of the agreement, which was signed between the exchanges of the two countries on February 14.

A preliminary agreement between the bourses was signed by their chairpersons during the visit of Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, to Turkey in November 2021.

“Broadening global partnerships is a core element of ADX’s strategy to increase liquidity, enhance market efficiency and drive the sustainable growth of our market,” said chairman Hisham Malak.

“We are appreciative of the role that Borsa Istanbul will play in further developing [the] ADX’s technological capabilities. We also look forward to exploring further areas of co-operation for the mutual benefit of our exchanges in line with the memorandum of understanding signed in November.”

During Mr Erdogan's visit to the UAE, his first official trip to the country in almost a decade, the two countries signed agreements and protocols in several fields including health and medical sciences, sea and land transport, advanced industries and technology, climate action and culture.

Sheikh Mohamed also revealed plans to double trade between the countries.

The ADX, the second-biggest Arab stock market, is collaborating with global stock exchanges to “significantly increase market capitalisation” as part of its growth strategy announced in 2021.

The bourse's market capitalisation as of Wednesday was Dh1,74 trillion ($474 billion). Last year, the exchange signed agreements with Bahrain Bourse, Borsa Istanbul and Astana International Exchange to explore direct market opportunities and improve co-operation.

“ADX is broadening its range of products and services while investing in new technology to make trading more efficient and to enhance the customer experience,” said managing director and chief executive Saeed Al Dhaheri.

Under the agreement, Borsa Istanbul will assist the ADX with IT systems, integration, application and acceptance tests, and experience transfer and training. It will also update the platform and transfer data.

“We will take this project as our own and work with Abu Dhabi Securities Exchange in system tests, system integration and data transfer processes in the most effective way, provide consultancy on various issues and make every effort to complete this project … in the best possible way,” said Borsa Istanbul chief executive Korkmaz Ergun.

The ADX, part of Abu Dhabi holding company ADQ, has had a string of initial public offerings in recent months.

The Abu Dhabi Ports Group's shares began to trade on the exchange last week while Adnoc Drilling and Fertiglobe, the world’s largest seaborne exporter of urea and ammonia combined, listed on the ADX in October.

“In recent months, we have attracted a series of listings and launched a derivatives market following a partnership with Nasdaq to deliver innovative technology,” said Mr Al Dhaheri.

“Our network of partnerships make a valuable contribution to the 'ADX One' strategy to be a market of choice for issuers and investors.”