Capital Markets
From The Report: Abu Dhabi 2013
View in Online Reader
While it has been another challenging year for Abu Dhabi’s capital market, some developments in the fixed-income segment, new equities listings and a raft of regulations that promise to add more depth to the market have ensured that it was also an interesting one. The significant regulatory steps taken over the past year, supplemented by a pipeline of reforms still to come, form the framework for the future expansion of the Abu Dhabi Securities Exchange (ADX). Yet more functionality will come with an upgraded trading platform planned for the second half of 2013. Of course, like all exchanges in the region, the ADX faces a challenge in attracting new listings and liquidity, but while mixed results are expected in the short term, the long-term prospects of the ADX remain as strong as ever. This chapter includes interviews with Rashed Al Baloushi, CEO, Abu Dhabi Securities Exchange (ADX); and Nazem Al Kudsi, CEO, Invest AD. It also includes a viewpoint with Mohammad Al Murtada Al Dandashi, Partner & Managing Director, Al Ramz Securities.
Articles from this Chapter
Confidence boost: Ongoing reforms enhance the trading environment
Constant development: OBG talks to Rashed Al Baloushi, CEO, Abu Dhabi Securities Exchange (ADX)OBGplus
Interview: Rashed Al Baloushi How is the ADX helping to develop Abu Dhabi as a regional centre for capital markets? RASHED AL BALOUSHI: Our first pillar of development is focused on the equity market’s structure. We are trying to build its strength through implementing international best practices and regulations. We are also enhancing the services the ADX provides its stakeholders. This includes automation of transactions, making processes faster and providing easy access to the market. The…
OBG talks to Nazem Al Kudsi, CEO, Invest ADOBGplus
Interview: Nazem Al Kudsi What effect has the slowdown of Western economies had on institutional investors’ appetite towards the Middle East and Africa (MEA)? NAZEM AL KUDSI: Due to uncertainties in the global economy, institutional investors have been very risk averse in the last four years, but there are clear signs that they are looking to new growth markets, such as in the MEA region, to help lift returns. A survey of 158 global institutional investors, commissioned by Invest AD and carried…
The next step: A range of updated rules support the bid for reclassificationOBGplus
Formulating market regulation in the UAE is a symbiotic process, in which the Securities and Commodities Authority (SCA) works closely with the Abu Dhabi Securities Exchange (ADX) and its counterpart in Dubai. A long history of cooperation has enabled the regulatory framework to keep pace with the demands of the nation’s evolving capital markets – a tradition that has been maintained in 2012 with an array of draft rules being put out for consultation. The regulatory innovations expected to…
Added activity: Bond market receives a boost with a number of issuancesOBGplus
The opening months of 2012 were characterised by renewed optimism throughout GCC debt markets, as a series of well-received bond issuances suggested that the period of quiescence that followed the global economic crisis had reached its end. Regional issuers moved to take advantage of favourable funding costs and increased liquidity in the market, and Abu Dhabi-based firms played a sizeable part in issuing activity, making the UAE the largest source of corporate bond issuances in the first quarter…
Mohammad Al Murtada Al Dandashi, Partner & Managing Director, Al Ramz Securities, on economic prospects and capital market challengesOBGplus
Despite the international volatility since 2008, the UAE has managed to sustain its economy and even emerge in stronger shape in various fields. High oil prices, solid infrastructure and cohesive socioeconomics, among other factors, have helped the national economy continue its long-term growth. The UAE is a safe haven for foreign direct investment (FDI), as well as a business centre for those interested in the Middle East and North Africa. It has witnessed remarkable growth in inflows from abroad…
International relations: The bourse is looking for partners abroadOBGplus
According to the most recent ADX data, during the period between the inception of the exchange and the end of 2011, a total of 904,940 National Investor Numbers (NINs) were issued. NINs are necessary to interact with the exchange. Some 344,367 were granted to foreign investors, the majority of which (272,455) came from GCC nations, followed by investors from other Arab countries (44,660), and a smaller number (22,252) from beyond the Middle East and North Africa region. The ADX’s plans to diversify…
Union National Bank: Financial servicesOBGplus
THE COMPANY: Established in 1982, Union National Bank (UNB) has become a leading commercial bank in the country. To date, UNB has 55 branches across the UAE providing basic services, such as deposits, loans and credit cards, as well as more complicated ones including wealth management and investment banking. UNB is also one of the traditional commercial banks that have opened their own Islamic service windows, which provide services that include asset management and investment banking. In addition, UNB offers conventional and Islamic brokerage services through its subsidiary, UNB Brokerage Company. Meanwhile, another subsidiary, Al Wifaq Finance…
Abu Dhabi Commercial Bank: Financial servicesOBGplus
THE COMPANY: Abu Dhabi Commercial Bank (ADCB) was formed in 1985 when Khalij Commercial Bank merged with Emirates Commercial Bank and Federal Commercial Bank, and changed its name. ADCB’s principal activities include: wholesale banking, consumer banking, treasury and investment-related services. Additionally, the bank offers services to its customers including financing facility, cash management services, trade services, debit cards, credit cards, deposit accounts services, treasury services and investment-related services. Moreover, it operates through its network of 48 full service branches in the UAE, its two branches in India and its…
Aldar Properties: Real estateOBGplus
THE COMPANY: Aldar Properties is a real estate development, management and investment company with headquarters in Abu Dhabi, UAE. The establishment of Aldar Properties was approved in October 2004 by the Abu Dhabi Department of Planning and Economy, and the company’s incorporation was declared in February 2005. Since launching, the company has announced assignments worth more than $75bn, in a property development portfolio diverse in scope and style. Aldar’s first international expansion was announced in August 2007 via a tie-up with South Johor Investment Corporation in a deal that represents the largest foreign real estate development…
Emirates Telecommunications Corp.: TelecomsOBGplus
THE COMPANY: Emirates Telecommunications Corporation, or Etisalat, is a leading multinational telecoms operator, with a presence in 17 countries spread across the Middle East, Africa and Asia. With such a wide presence, Etisalat now has access to a population of more than 800m. Etisalat’s international presence started in earnest in 2004 when it won its second mobile licence and first 3G licence in Saudi Arabia. The next several years would see the operator embark on widening its geographic reach and expanding its subscribers from 4m in 2004 to 172m, by end-June 2012. In the UAE alone, Etisalat had approximately 6.8m mobile subscribers,…
First Gulf Bank: Financial servicesOBGplus
THE COMPANY: Established in 1979 and headquartered in Abu Dhabi, First Gulf Bank (FGB) provides conventional and Islamic commercial banking services, including deposits, loans and credit cards; conventional and Islamic investment banking services, such as corporate finance and investment advisory on mergers and acquisitions, initial public offerings and underwriting; conventional and Islamic asset management services, including fund, portfolio and wealth management; and conventional and Islamic private equity investments. After a somewhat rocky start, FBG overhauled its management team in 2000 and now has a strategic alliance with Citibank.…
Sorouh Real Estate: Real estateOBGplus
THE COMPANY: Headquartered in Abu Dhabi, Sorouh Real Estate (Sorouh) is one of the largest real estate developers in the UAE. Formed in July 2003 and formally incorporated as a public joint stock company on July 26, 2005 with capital of Dh2.5bn ($680.46m), Sorouh is now one of the largest real estate developers listed on the Abu Dhabi Securities Exchange. In November 2007 Sorouh won the award for “Best New Business” at the inaugural Middle East Business Achievement Awards. The group has already launched a number of major development projects such as its flagship project, Shams Abu Dhabi, including Sky Tower – slated to be the highest…
