ABU DHABI: Abu Dhabi Securities Exchange (ADX) and Bahrain Bourse (BHB) signed on Wednesday a strategic cooperation agreement that aims to achieve synergies and greater cross border cooperation to enhance market liquidity and to promote the issuance of low-cost investment vehicles.

The parties agreed on a strategic plan to implement new measures over the next nine months to strengthen ties between investors based in both countries by enabling the seamless placement of orders on both securities markets, while reducing transaction costs. As part of the agreement, ADX and BHB have agreed to introduce a number of products and services including Exchange Traded Funds (ETFs), smart order routing and cross-border direct trading.

Mohammed Ali Al Shorafa Al Hammadi, ADX Chairman, commented, “The alliance between ADX and Bahrain Bourse will further enhance the relationship between the UAE and Bahrain, showcasing the high growth opportunities on both exchanges and encouraging capital market activity through the introduction of innovative products and services.”

“In turn, this will provide tangible benefits to the economies of the UAE and the Kingdom of Bahrain.” Abdulkarim Ahmed Bucheery, Chairman of Bahrain Bourse and Chairman of Bahrain Clear, said, “Bahrain Bourse is pleased to solidify its cooperation ties with ADX. Companies listed on Bahrain Bourse represent a diverse range of industries and offer unparalleled and unique growth opportunities. Our partnership with ADX will attract new investors and promote a healthy listing deal pipeline. Bahrain Bourse and Bahrain Clear’s collaboration with ADX will also support the growth of capital markets in the region and support the diversification of GCC economies.”

For his part, Saeed Hamad Al Dhaheri, Chief Executive Officer of ADX, commented, “Discussions between ADX and Bahrain Bourse focused on how we can expand market integration and move forward on joint initiatives such as dual listings, ETFs and market access, which will enhance liquidity in both securities markets. Technology and innovation are at the heart of ADX’s strategy for growth and we look forward to deepening our partnership with other leading regional and global exchanges to bring about mutually beneficial results.”

Shaikh Khalifa bin Ebrahim Al Khalifa, Bahrain Bourse’s Chief Executive Officer and Vice Chairman and Managing Director of Bahrain Clear, said, “This strategic collaboration follows our innovative approach to widen cross-border investment opportunities. We aim to develop seamless offers to investors, and to provide enhanced access with unmatched efficiency workflow in both markets whilst reducing transaction costs and bolstering market liquidity. Innovation sits at the heart of our collaboration, in line with our mandate to evolve the Middle East’s capital market ecosystem, and hence we also aim to promote the listing of ETFs, enable CSD integration in both markets, and automate smart order routing systems. This partnership will enable us to set a blueprint for future regional collaboration and harness each other’s capabilities.” As part of ADX’s strategy for growth announced at the beginning of the year, the exchange is forging partnerships with global exchanges, offering a broader range of products and services to the market, and investing in state-of-the-art infrastructure.

Last month under the directives of the Supreme Council for Financial and Economic Affairs, Sheikh Khaled Bin Mohamed Bin Zayed Al Nahyan, member of the Abu Dhabi Executive Council, Chairman of the Abu Dhabi Executive Office, and member of the board of Abu Dhabi Supreme Council for Financial and Economic Affairs, has launched the Abu Dhabi IPO Fund to act as a catalyst to strengthen Abu Dhabi Securities Exchange (ADX)’s position as a leading stock market.

WAM