Abu Dhabi Securities Exchange (ADX) announced today that it has signed a Memorandum of Understanding (MOU) with the Sharjah Investment and Development Authority (Shurooq). The MOU aims to foster bilateral cooperation and to provide advanced, innovative services and facilities development to the business community in the UAE.
During the ceremony, H.E. Mohammed Ali Al Shorafa Al Hammadi, Chairman of ADX, witnessed the signing of this agreement between H.E. Marwan bin Jassim Al Sarkal, Executive Chairman of Shurooq, and Mr. Saeed Hamad Al Dhaheri, Chief Executive Officer of ADX.
The agreement is in line with ADX’s strategy towards promoting growth and ensuring sustainability of the financial services sector in the emirate of Abu Dhabi. It is also part of the exchange’s ongoing efforts to cooperate with economic entities throughout the emirates with the aim of enhancing the business environment in the financial markets field.
The MOU serves to stimulate the conversion and listing of existing economic establishments in the emirate of Sharjah to ADX, while also strengthening levels of cooperation between the two parties in the field of providing investor services. The agreement outlines the necessary mechanisms to follow in order to streamline the process of obtaining the necessary approvals for completing the conversion and listing. The MOU also aims to simplify the stages of conversion and listing procedures which will save time and effort required. In addition, it eases requirements of conversion processes and procedures into public or private joint stock companies and listing them on ADX through the “One Stop Shop” service. In order to implement the agreement, the two parties agreed to form a working group that will carry out the objectives of the memorandum and promote joint cooperation initiatives.
H.E. Marwan bin Jassim Al Sarkal, Executive Chairman of Shurooq, said: “The MOU between Shurooq and ADX reinforces our mission to encourage and support investment opportunities for local companies by going public and entering UAE’s stock market, which is an ultimate catalyst for new business growth and increased competitiveness.”
He continued: “Such opportunities also promote and encourage positive corporate governance principles such as transparency and integrity, as well as empower a more strategic acquisition and distribution of assets and funds across a wide range of sectors which directly support Sharjah’s economic diversification strategy as well as UAE’s continued economic growth and sustainability.”
Commenting on the signing, Chief Executive Officer of ADX, Mr. Saeed Hamad Al Dhaheri, said: “ADX is delighted to sign this MOU with Shurooq, as it will create new opportunities to promote further cooperation and synergy between the two entities in various fields. We are sure investors will benefit from improved access to capital to fund their strategic ambitions and growth plans under our well-established market and regulatory infrastructure, facilitating the ease of listing of a variety of asset classes. Abu Dhabi is becoming increasingly successful in attracting a more diverse range of investment firms and investor profiles, supported by the exchange’s growing liquidity, raising foreign ownership limits, customer focus and robust and transparent regulations.”
It is worthy to note that ADX has recently launched its latest investment service “Covered Short Selling”, to support the exchange’s strategy of diversifying investment and providing investors with a broader range of hedging mechanisms. By doing so, it will attract a new segment of specialized and experienced investors, driving both liquidity and trading volumes.