Dubai: A new benchmark has been introduced by ADX, which will track stocks of ‘emerging and fast-growing companies starting their capital market journey’ in the UAE.
The FTSE ADX Growth Market takes over from ‘Second Market’, and will allow potential investors to connect with private businesses in sectors such as transportation, wholesale trading, healthcare and sports.
“The new index will enable investors to track the exciting opportunities in the Growth Market segment and make insightful investment decisions to better manage their investment portfolios,” said Saeed Hamad Al Dhaheri, Managing Director and CEO of Abu Dhabi Securities Exchange. “Our collaboration with FTSE Russell is an important component in increasing liquidity and supporting the exchange's market capitalization growth.”
The FTSE ADX Growth Market Index will provide investors with the ability to 'mimic the Growth Market performance'.
First step to going public
Bringing down the time for private companies to go public has always been part of the UAE’s plans to deepen its stock markets. The Growth Market would allow businesses with a reasonable track record to bring in strategic investors but without having to go the full extent that a full-scale IPO would require.
