Tuesday, 02 January 2024 12:17 GMT

Abu Dhabi Securities Exchange Celebrates 25 Years Of Growth And Innovation


(MENAFN- Khaleej Times)

Since 2020, IPOs on the Abu Dhabi Securities Exchange (ADX) have raised approximately Dh59 billion, underscoring the exchange's emergence as a global hub for capital and investment. As the ADX marks its 25th anniversary, it reflects on a journey defined by resilience, innovation, and a commitment to empowering investors and sustainable economic growth.

Established in 2000 with just 12 listed companies and local investors, ADX has transformed into a marketplace hosting over 200 securities and serving 1.2 million investors from more than 200 nationalities. Today, it ranks among the world's top 20 exchanges by market capitalization, with a market value exceeding Dh3 trillion.

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Speaking at the Silver Jubilee celebration, Ghannam Al Mazrouei, Chairman of the ADX Group, recalled the exchange's humble beginnings:“I remember the buzz when the ADX went 'live' in November 2000. From just 12 listed companies, the ADX is now home to over 200 listed securities, serving global investors and turning around a trading value of more than Dh1 billion daily.”

Al Mazrouei emphasised ADX's role as a strategic gateway for global capital:“Under the wise guidance of Abu Dhabi leadership, the ADX has thrived to become the second largest exchange in the region and one of the top 20 globally. We have fundamentally anchored the ADX as a gateway of opportunity, connecting the world to Abu Dhabi.”

The past five years have been particularly transformative. IPO activity surged, raising nearly Dh18 billion in 2023 among the highest globally and Dh12.8 billion in 2024. ADX-listed companies have distributed more than Dh320 billion in cash dividends since 2020, achieving a compound annual growth rate of over 33 per cent. This performance reflects the strength of Abu Dhabi corporates and the exchange's ability to deliver long-term value.

Abdulla Salem Alnuaimi, Group CEO of ADX, highlighted the exchange's forward-looking strategy:“The past 25 years reflect a journey of resilience, innovation, and progress. Our focus now is to build on this foundation expanding products, deepening liquidity, embracing technology, and creating long-term value for all stakeholders.”

Earlier this year, ADX launched the ADX Group, comprising Abu Dhabi Clear and Abu Dhabi Central Securities Depository, to enhance market efficiency and post-trade services. The exchange also announced plans to introduce the FTSE ADX Dividend Stars Index, spotlighting companies with strong dividend profiles.

Innovation has been central to ADX's evolution. The exchange pioneered regional firsts such as exchange-traded funds, foreign sovereign bonds, blockchain-enabled eVoting, and the region's first blockchain-based digital bond. Looking ahead, ADX aims to strengthen digital infrastructure, expand investment products, and deepen regional integration through platforms like Tabadul, which links six regional markets.

As Al Mazrouei concluded:“The seed of ambition planted 25 years ago has flourished into a robust tree of opportunities. The ADX Group will remain deeply committed to fulfilling the UAE's vision of a diversified and sustainable economy.”

With a legacy of innovation and a roadmap for future growth, ADX stands poised to continue empowering capital, investors, and sustainable prosperity for generations to come.

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Khaleej Times

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