Tuesday, 02 January 2024 12:17 GMT

Abu Dhabi Exchange Hits Quarter-Century Milestone


(MENAFN- The Arabian Post)

The Abu Dhabi Securities Exchange has marked its 25th year, standing today as one of the world's top 20 stock markets by market value. Founded in 2000 with just 12 listed companies, the exchange now hosts more than 200 securities, carries a market capitalisation in excess of AED 3 trillion and counts 1.2 million investors drawn from over 200 nationalities.

This milestone comes as the ADX embarks on an upgraded platform designed to support the emirate's ambition to become a global financial centre. Key to its evolution is the formation earlier this year of the ADX Group, which brings together ADX Clear and AD CSD under a unified structure. This integration aims to streamline clearing, settlement and depository services and deepen market infrastructure.

Chairman Ghannam Al Mazrouei reflected on the transformation:“From just 12 listed companies with only local investors, the ADX has grown to over 200 listed securities, serving global investors of more than 200 nationalities and delivering trading value of more than AED 1 billion daily.” Group Chief Executive Officer Abdulla Salem Alnuaimi stated that the past two and a half decades represent a“journey of resilience, innovation and progress” and emphasised that the next phase will focus on expanding products, deepening liquidity and embracing technology.

Capital-raising activity has been a strong marker of the exchange's maturation. Since 2020 the ADX has supported IPOs raising approximately AED 59 billion. In 2023 alone, listings brought in about AED 18 billion and the momentum continued into 2024 with nearly AED 12.8 billion. Meanwhile, listed companies on the exchange have distributed more than AED 320 billion in cash dividends since 2020, representing a compound annual growth rate in excess of 33 per cent.

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Institutional and international investors have also increasingly participated. Foreign net investment grew sharply in the first half of 2025, reaching USD 3.7 billion - a year-on-year surge of nearly 100 per cent - underlining the exchange's appeal as a gateway for global capital into the UAE economy.

Looking ahead ADX is making strides to foster deeper ties with international markets. It has entered into strategic collaborations aimed at cross-listing opportunities and new product launches such as exchange-traded funds and ESG-linked instruments. Its trading infrastructure upgrade in partnership with Nasdaq leverages a modern integrated platform capable of supporting equities, ETFs, bonds, sukuk and derivatives. The adoption of ISO 20022 messaging protocols further enhances connectivity with global financial institutions.

For domestic corporates ADX offers a growing and increasingly accessible source of capital. Its evolution aligns with Abu Dhabi's broader economic diversification strategy, which emphasises a shift away from hydrocarbons towards a knowledge-based and sustainable economy. The exchange is positioning itself as a critical enabler of that agenda.

Market analysts point out that achieving a market capitalisation above AED 3 trillion places ADX among the highest ranked exchanges globally outside the traditional major markets. That status has practical implications: it attracts international institutional interest, enhances liquidity, and raises the profile of listed companies. At the same time, challenges remain. Further increasing trading volumes, improving retail investor depth, managing volatility in global markets, and ensuring regulatory and technological robustness are all considerations for the exchange as it enters its next quarter-century.

In celebration of the silver jubilee ADX announced the launch of the FTSE ADX Dividend Stars Index, a new benchmark to highlight companies with strong and sustainable dividends. It also committed to planting Ghaf trees as a symbol of deeper sustainability ties and the long-term vision underpinning its growth.

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The Arabian Post

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