A significant expansion in trading options has been made available, as stocks listed on the Abu Dhabi Securities Exchange (ADX) have recently been integrated into an online trading platform. This follows a 2023 agreement aimed at improving investor access to companies based in the UAE. Currently, over 30 companies from the ADX are now tradeable, spanning key sectors such as energy, real estate, banking, technology, and healthcare. The ADX boasts a robust total market capitalization exceeding $700 billion.
In 2024, the ADX achieved remarkable success with initial public offerings (IPOs), totaling $3.35 billion. It ranked as the seventh-largest emerging market exchange with a market cap of $799 billion and figured among the top five global exchanges for IPO earnings, capturing 27% of IPO proceeds across the Middle East and 54% within the UAE. The number of listed securities grew to 187, including 28 new listings. With the initial batch of stocks now on this trading platform, they collectively represent approximately $713 billion in market capitalization, accounting for nearly 88% of the exchange’s total market cap of $818 billion.
The derivatives market on the ADX has experienced outstanding growth, reporting a 154% increase in trades. The overall trading value on the exchange reached AED 342 billion in 2024, marking a 7% increase from the previous year. Additionally, net foreign investment hit AED 24 billion, with foreign investors participating in nearly 40% of trading activities, contributing a trading value of AED 262 billion.
The platform’s integration of ADX-listed stocks signifies a milestone for investors looking to diversify their portfolios with significant UAE-based businesses. Institutional investors played a vital role in this growth, contributing approximately 80% of the total trade value. As the ADX operates amongst the world’s top 20 exchanges and ranks as the second-largest in the Middle East, it continues to attract attention from a global trading audience.
Furthermore, there is anticipation surrounding an initial public offering for the company, which has submitted a confidential draft Registration Statement to the U.S. Securities and Exchange Commission (SEC). However, details regarding the number of shares and pricing have yet to be disclosed. The IPO process will proceed following the SEC’s review, contingent upon market conditions and other relevant factors, with no specific timeline established.
In summary, the recent addition of ADX stocks to this trading platform represents a major advancement in market access for both local and international investors, coupled with impressive performance metrics from the ADX itself. Now, users have expanded avenues to explore investment opportunities across notable sectors and grow their portfolios effectively.