ADX signs pact with New York Stock Exchange to explore dual listings

Two bourses will also collaborate on opportunities to develop exchange traded funds and data and index products

Abu Dhabi Securities Exchange is the second-largest bourse in the Arab world by market capitalisation. Victor Besa / The National

The Abu Dhabi Securities Exchange, the Arab world’s second-largest exchange by market value, has signed an initial agreement with the New York Stock Exchange to explore dual listing of companies on both exchanges.

The ADX and the NYSE, part of Intercontinental Exchange, will also explore opportunities to develop exchange traded funds and data and index products, as well as to collaborate on sustainability-related initiatives, the ADX said in a statement on Thursday.

John Tuttle, vice chairman of the NYSE, and Abdulla Al Nuaimi, chief executive of the ADX, signed the latest pact in Abu Dhabi.

It follows the announcement last week of the ADX selecting the ICE Global Network to offer global institutional investors direct access to its market data and order entry.

The collaboration “fosters greater connectivity between issuers and investors by facilitating the ease of dual listings, providing companies with greater visibility and access to a larger pool of investors while offering them the opportunity to participate in the growth stories of companies from diverse geographic regions,” Mr Al Nuaimi said.

The agreement with the NYSE introduces new financial products and services for both local as well as global investors, he added.

“This collaboration represents a key moment in ADX’s journey to reinforce Abu Dhabi's position as a thriving global financial centre … and opening the door to a new era of growth and unlimited potential,” he said.

In September last year, the ADX signed similar preliminary agreements with the Muscat bourse and the sultanate’s Clearing and Depository Company that allow dual listing of Muscat-traded companies in Abu Dhabi.

The ADX has a market value of more than Dh1.39 trillion ($378.7 billion) as of Wednesday.

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.

The latest pact builds on ICE’s broader commitment to the region, including its collaboration with Adnoc to launch ICE Futures Abu Dhabi in 2021.

“The agreement represents an exciting new initiative for the NYSE, building upon ICE’s investments in the region,” Mr Tuttle said.

The agreement is designed to provide each region’s investor base with access to cross-listed securities that will help drive economic growth, he added.