Abu Dhabi: Abu Dhabi Global Market (ADGM) and Shanghai Stock Exchange (SSE) China’s largest securities exchange, signed a Memorandum of Understanding (MoU) on Monday to cooperate on the establishment of a ‘Belt and Road’ exchange at ADGM.
The cooperation harnesses Abu Dhabi’s strategic position along the Silk Road Economic Belt, ADGM’s best-in-class regulatory regime and SSE’s position as a growing global exchange. The international exchange will fulfil the investment and financing needs for issuers, investors and market participants within the Middle East and North Africa (Mena) region, along the Belt-and-Road route, and globally.
The MoU marks the successful culmination of a close relationship developed between ADGM and SSE, including on-site visits and extensive engagement with key stakeholders in both markets that covered a wide spectrum of focus areas including regulatory requirements, legal frameworks, alongside investment requirements of potential local and global market participants.
When established, the Belt and Road exchange in Abu Dhabi will serve as a key international capital-raising platform supporting Chinese enterprises, foreign companies and global organisations to finance their investments.
The partnership with SSE is a testament of ADGM’s commitment to China and further boost mutual cooperation and existing long-term relationships between ADGM and various Chinese authorities and stakeholders.
Commenting on the signing, Que Bo, Deputy President of Shanghai Stock Exchange, said, “Shanghai Stock Exchange is pleased to sign the MoU with Abu Dhabi Global Market. We will continue to work closely with ADGM and strategic partners to determine the operational model, product offerings and critical path to success in achieving the common objective of establishing a world class One Belt One Road Exchange.”
Richard Teng, Chief Executive Officer, Financial Services Regulatory Authority of ADGM, in turn, said, “We are pleased to support China’s One Belt One Road initiative and look forward to further strengthening our relationship with Shanghai Stock Exchange as the Belt and Road exchange is developed within ADGM. We will work closely with our partner to better serve the ever-increasing capital and investment needs of both markets and our respective pools of international industry participants.
As an international financial centre in Abu Dhabi, ADGM will continue to engage in and support ground-breaking initiatives that enhance the local financial services environment and those that lead to the acceleration of growth opportunities that bolster the economies of Abu Dhabi, the UAE and the broader Mena region.
