Dubai: Abu Dhabi Securities Exchange said it seeks to develop domestic debt market and asset securitisation market to encourage participation of institutional investors and boost liquidity.
The reward will be a more stable financial and market outlook, and would be less affected by adverse market reactions, the ADX said.
“One of our leading strategic initiatives at ADX aims towards diversifying investment products which will create more vehicles for investing money that will help to stimulate long-term growth and diversification, as will the encouragement of more institutional investors,” said Rashed Al Balooshi, chief executive officer, ADX.
The exchange also listed a government $1.5 billion (Dh5.5 billion) government bonds maturing in 2019.
The bond has a dual listing on the London Stock Exchange as well, helping investors to trade both on LSE and ADX simultaneously.
The exchange is in talks with a number family owned businesses to convince them to list on the exchange. Al Balooshi said on September 22 that the ADX was in talks with four private companies for an initial public offering (IPO), out of which two may get listed this year.
“A greater level of stability will be brought to the capital formation markets through the creation and attraction of institutions, which will take a more long-term view of companies and make investment decisions based on potential longer-term gains,” said Al Balooshi.
The number of foreign institutional investors have more than doubled to 790 by the end of September 2014 from 381 foreign institutions registered at the Exchange in 2013.
“A lot of clients have been added due the MSCI upgrade. and that has put the market in the spotlight,” said Jaap Meijer, executive director at Arqaam Capital.
The MSCI upgraded the UAE and Qatar to emerging market from frontier market in May, a move that is expected to boost the capital flows into the country.