The forum was attended by Rashed Al Blooshi, Chief Executive of ADX, representatives from ADX’s listed companies as well as members of ADX senior management.
The Forum aimed to introduce and keep partners up-to-date with the latest services and mechanisms, designed by ADX, to support listed companies’ compliance with the disclosure and transparency requirements of the market.
Mr. Rashed Al Blooshi stressed ADX’s commitment to developing frameworks for effective joint coordination with companies listed on the market and various related parties in order to improve trading systems and long-term investment savings. ADX is also dedicated to ready the companies to meet the requirements of disclosure and transparency, which come within the framework of ADX’s commitment to support the Abu Dhabi Plan, by developing and strengthening the investment climate of the Emirate and creating a flexible competitive environment for doing business.
Mr. Al Blooshi said: “Abu Dhabi Securities Exchange (ADX) is continually developing the services it provides to listed customers and companies, and continues its efforts to develop and launch strategic initiatives aimed at increasing market value and products in order to attract and leverage a wider range of investors. This is done in order to enhance the Nation’s investment structure and support its sustainable economic development, as part of ADX’s mission to contribute to Abu Dhabi Economic Vision 2030.”
The Forum discussed the methodology adopted by ADX in terms of financial disclosures and the significant results achieved by its listed companies, which recorded a rise in net profit during the second quarter of 2017 by 10.73% compared to the same period of 2016. The service sector recorded the highest increase in the second quarter of 2017 by 229.7%, followed by the energy sector, which increased by 175% in the second quarter of 2017.
Participants were presented with the latest digital services developed for ADX listed companies. These services have been designed to meet the requirements of disclosure and transparency and ensure the prompt delivery of information to shareholders and investors within a transparent governance framework and under sound business practices. They also included securities registration services, the new ADX website, and its easy-to-navigate interface, that meet the various needs of listed companies, shareholders and financial analysts.
Al Blooshi added: “Abu Dhabi Securities Exchange (ADX) continues to strive to enhance its technical infrastructure, characterized by the highest international standards adopted in listing and trading diversified securities. ADX also provides innovative products and services based on global best practices in disclosure, transparency and corporate governance to provide a fair and secure investment environment. This comes as part of ADX’s commitment to support the Abu Dhabi Plan, develop the financial services sector in the Emirate, and diversify the channels and methods of communication it has with customers by offering leading digital platforms and solutions.”
ADX’s team offered a detailed explanation of its latest investment services, ‘Technical Short Selling Service’ (TSS), which is part of their strategy to diversify investment and hedge mechanisms and raise the level of investment liquidity in order to attract new investors. The team also addressed various service procedures including laws and regulated procedures, such as technical short-term securities, liquidity, turnover rate, free stocks, etc., as well as various cases of technical short sale.
The Forum also presented a comprehensive definition of the services related to the liquidity provider and the rights of subscription. They also presented the use of the Blockchain technology, with a focus on the importance of the listed companies’ compliance with the international financial reporting standards, using the XBRL language, which has recently been transferred to ADX.
During the Forum, it was confirmed that the period of disclosure for the third quarter financial reports will continue until November 14, after its start on October 1. Al Blooshi urged listed companies to disclose their financial reports for the third quarter in a timely manner, in order to avoid any technical or procedural challenges.
As part of the Exchange’s strategy to speed up the disclosure of financial statements, ADX honoured the first five listed companies to disclose their financial statements within the time period set for them during the second and third quarters of this year. Companies honoured for promptly disclosing during the second quarter are: Union National Bank, United Arab Bank, Sharjah Islamic Bank, National Bank of Fujairah, and invest bank. Companies honoured for promptly disclosing during the third quarter are: Union National Bank, Sharjah Islamic Bank, United Arab Bank, National Bank of Umm Al Qaiwain, and Eshraq Properties
From their side, representatives of listed companies welcomed ADX’s initiative. Wael Zahnan, Company Secretary of United Arab Bank, said: “United Arab bank is proud to be one of the companies that was honored by ADX for on time disclosing for the second and third quarters of 2017. On behalf of the Chairman of the Board, Shaikh Faisal Bin Sultan Al Qassimi and Acting CEO Mr. Samer Tamimi, United Arab Bank would like to thank ADX for the sustainable support of all listed companies.”
While Adnan Anwar CFO of National Bank of Fujairah stated: “I am very pleased with the ADX forum, they have been leading the way in the technology and the utilization. For example, ADX were the first stock market in the MENA region to introduce Blockchain technology in their services.”
Ziad Touma, General Counsel Compliance officer, from Eshraq properties commented: “We thank ADX for this forum which has covered and responded to the questions raised by listed companies. This forum briefed us about new technologies and new disclosure methods which will facilitate and speed-up the disclosure process and help listed companies to be very transparent.”
ADX has previously organised an awareness campaign on the ‘Technical Short Selling’ (TSS) service, including its objectives, controls and investment returns, targeting investors and stakeholders in Abu Dhabi, Fujairah, Sharjah, Ras Al Khaimah and Al Ain through a series of specialised seminars. The campaign came as part of an intensive awareness programme adopted by ADX to introduce investors, customers and brokers to the new service and its revenues, including simplifying the various technical aspects related to its application and introducing them in the best manner within regulatory controls and standards. ADX has trained and qualified brokerage firms, market makers and local funds to serve the TSS product to ensure full service understanding, benefit from its positive reflections on both dealers and market liquidity as well as contribute to enhancing long-term savings investment.