Jordan-Abu Dhabi Market Link To Boost Liquidity, Safwa Islamic Bank Chairman Says

Abu Dhabi, June 1 (Petra) -- Chairman of the Board of Directors of the Safwa Islamic Bank, Mohammad Abu Hammour, described the electronic linkage between Jordan's capital market institutions and the Abu Dhabi Securities Exchange, which went live on Monday through the "Tabadul" platform, as an important step that will enhance liquidity in both markets and broaden their investor base.

He said the linkage opens wider prospects for integration among Arab capital markets and stock exchanges while providing a gateway to regional markets through cross-market trading, dual listings and other forms of cooperation available to financial markets.

In remarks to Petra's correspondent in Abu Dhabi, Abu Hammour said the activation of the electronic link between the financial markets of the two countries will, in the near term, require the issuance of detailed guidelines addressing questions from investors, banks and brokerage firms awaiting further information on trading mechanisms, related fees and commissions, and other operational details. Such guidance, he said, would facilitate the participation of banks, brokerage firms and their clients in the electronic trading system, enabling them to play a leading role and benefit from this positive cooperation.

He noted that Jordan is the seventh market to join the Tabadul platform, highlighting the rapid expansion of the initiative and the broader options it offers companies and banks in trading, dual listings and other areas.

Abu Hammour added that this advanced step in cooperation between the two markets comes within the framework of the strategic partnership and strengthened collaboration between Jordan and the United Arab Emirates, in line with efforts to develop regional financial markets and deepen integration among them. He said the initiative would help expand the investor base and increase access to financial markets through cross-market trading conducted by brokerage firms operating between the two exchanges.

The Safwa Islamic Bank chairman said the activation of the electronic linkage represents an important strategic step toward greater integration among Arab financial markets. He said it aligns with longstanding Arab efforts aimed at deepening markets, expanding joint trading opportunities, and linking exchanges in a way that enhances liquidity, increases participation and trading activity, and facilitates the exchange of expertise. It would also improve the ability of markets to respond to crises affecting capital markets and enhance transparency and stability, as companies operating within the Tabadul framework would be required to comply with a broader range of financial and regulatory standards across participating jurisdictions.

Abu Hammour stressed the importance of the cooperation, which he said reflects the direction of the governments of the two countries and embodies the depth of their strategic and economic ties. He described the initiative as a new starting point for expanding joint cooperation and said it is expected to be followed by detailed guidance for brokerage firms aimed at accelerating activity through the Tabadul platform and deepening the experience by leveraging the significant capabilities of both the Amman and Abu Dhabi markets.

He described the Tabadul platform as an advanced model of integration among financial markets, as it provides investors and brokerage firms with easier access to member exchanges through a sophisticated and secure trading environment.

Abu Hammour said this type of cooperation enhances the attractiveness of the partner markets participating in the platform, serves the strategic interests of both markets, and opens the door to additional liquidity from Arab markets to be invested in Jordan's stock market, which he said offers promising opportunities through a solid base of companies operating under sound corporate governance standards.

He noted that the electronic linkage with the Abu Dhabi Securities Exchange comes at a time when the Amman Stock Exchange has achieved record figures and listed companies have reported historic profits, supported by positive economic indicators despite regional challenges. He said these developments strengthen confidence in Jordan's investment environment and financial market, supported by government reform and incentive policies, financial, monetary and political stability, and the implementation of major projects.

The Tabadul platform, launched by the Abu Dhabi Securities Exchange in 2022, includes the Muscat Stock Exchange, Bahrain Bourse, Astana International Exchange, Kazakhstan Stock Exchange and Armenia Securities Exchange, in addition to the Amman Stock Exchange and the Abu Dhabi Securities Exchange. On Dec. 11, 2024, the Amman Stock Exchange and the Securities Depository Center signed an electronic linkage agreement with the Abu Dhabi Securities Exchange in Abu Dhabi to join the platform. The two exchanges announced on Monday the official launch of the electronic connection through the platform.

//Petra// AF

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