The pending decision to allow foreigners overseas to trade on the Abu Dhabi Securities Market (ADSM) is a positive move, since it could bring new money and interest to a market that has been suffering from stagnant trading volume.
Already foreigners holding residency permits can trade some stock on the bourse. But opening the door may draw in powerful institutional investors from abroad, in addition to the occasional small investor.
Hopefully, allowing in a wider range of investors will boost interest in lacklustre trading, dimmed by the cloud of war in Lebanon and ongoing pessimistic attitudes towards potential market growth.
But this move will have little impact unless the ADSM gains more depth in the number of listed companies it is a bit thin currently.
The mumblings of insider trading in both Abu Dhabi and Dubai aren't going to make those new potential investors feel any more comfortable putting their money into the bourse either.
