Traded values on Abu Dhabi Securities Exchange increased 407% in 2021

Traded values (buy + sell) on the Abu Dhabi Securities Exchange (ADX) increased 407 per cent from Dhs145bn in 2020 to Dhs739bn in 2021, driven by domestic and international investment.

Local investors accounted for 70 per cent of the exchange’s traded value, while foreign institutional investors comprised the remaining.

ADX also recorded a net foreign investment of Dhs15bn in 2021, the highest level recorded in the exchange’s history. The market value of shares owned by foreign investors in 2021 increased by 100 per cent from Dhs78bn to Dhs156bn, while those held by UAE nationals reached Dhs1.5tn compared to Dhs685bn, posting an increase of 117 per cent. The number of new investors registered on the exchange in 2021 increased 701 per cent from 2,362 in 2020 to 18,938 last year.

The number of new institutional investors increased 77 per cent from 400 in 2020 to 708 in 2021.

.@ADX_AE market liquidity grew five-fold and market capitalisation more than doubled to a record AED1.6 trillion in 2021, demonstrating the success of the ADX One Strategy. Nine companies joined the exchange, including ADNOC Drilling, which marked the largest IPO in ADX’s history pic.twitter.com/ddjQqTA0kk

— مكتب أبوظبي الإعلامي (@admediaoffice) February 21, 2022

The market capitalisation of stocks listed on the ADX more than doubled to Dhs1.6tn, Abu Dhabi Government Media Office reported.

The bourse rolled out its ‘ADX One’ strategy last year as part of which it introduced a derivatives market in the fourth quarter, paving the way for an agreement with FTSE Russell to develop co-branded indices.

Read: Abu Dhabi Securities Exchange partners with FTSE Russell to create new benchmark indices

The exchange also established a framework for listing Special Purpose Acquisition Company (SPAC) on ADX, which was approved by the Securities and Commodities Authority (SCA) in January.

Read: UAE’s Securities and Commodities Authority approves GCC’s first SPAC regulatory framework

Furthermore as part of the strategy, the exchange forged partnerships with global stock markets in 2021, such as Bahrain Bourse, Bursa Istanbul, and Astana International Exchange.

In 2021, the ADX also welcomed nine companies to the exchange, including ADNOC Drilling, Alpha Dhabi, the real estate and construction company owned by International Holding Company (IHC), and Yahsat, the satellite operator owned by Mubadala Investment Company, and Fertiglobe.

Six debt instruments and an Exchange Traded Fund (ETF) were also added on the exchange in 2021, bringing the number of publicly listed companies to 69, debt instruments to 27, private companies to 13 and ETFs to two.