UAE’s ADX and Bahrain Bourse launch Tabadul Exchange Hub

Abu Dhabi Securities Exchange (ADX) and Bahrain Bourse (BHB) have launched Tabadul, a digital exchange hub.

Tabadul was the result of the signed strategic partnership agreement in November 2021 between ADX and BHB to implement a cross-border plan in trading and post-trading environments.

Based on the mutual market access model, Tabadul will allow investments across Bahrain Bourse and Abu Dhabi and enable investors to trade directly on both exchanges through licensed brokers in both markets.

Tabadul will be accessible to all investors whom have registered with eligible local brokers and filled out the requisite KYC (know-your-customer) documents required by the local exchange in their country of residence. Securities on Tabadul are traded in the respective exchange’s local currency, and in the specified currency of the traded asset for some cases, with no minimum amount required for orders. Investors can trade on on-boarded exchanges during the designated days and trading hours.

All investors have to follow the respective capital markets’ official holidays and trading hours to trade securities.

Hisham Malak, chairman of ADX noted, “The launch of Tabadul reflects on the emirate’s commitment to have closer economic ties with nations in the region and enhance market liquidity. It is a step forward in enhancing cooperation between UAE and Bahrain and will further bring economic prosperity to both nations. This new milestone will contribute to the economic growth of Abu Dhabi through accelerating economic diversification and enhancing its financial services sector, attracting a wider range of investors and issuers from around the world creating a dynamic capital market environment.”

Saeed Hamad Al Dhaheri, MD and CEO of ADX, commented: “Broadening regional partnerships is a core element of ADX One strategy aiming to increase liquidity, enhance market efficiency, and drive the sustainable growth of the exchange. The launch of Tabadul is a testament to our commitment to the strategy and to being the market of choice for issuers and investors. Tabadul will strengthen ties between regional exchanges, and expand investment opportunities for investors. We look forward to working closely with our partners Bahrain Bourse to further enhance our offering and onboard more capital markets to the hub, enabling the growth of capital markets in the region and supporting the diversification of GCC economies.”

ADX has 20,000 registered Bahraini investors with a total trading value (buy + sell) of Dhs1.3bn and the trading volume (buy + sell) of 320 million shares in 2021. Tabadul is expected to further increase these numbers.

Bahrain Bourse’s CEO, vice chairman and MD of Bahrain Clear, Shaikh Khalifa Bin Ebrahim Al Khalifa said: “The launch of Tabadul is a key milestone achievement within the regional capital markets. Tabadul will be mutually beneficial to both capital markets – ADX and BHB, supporting the continued sustained growth in both markets by expanding the respective investor bases, and serving to meet the broadened horizons of investors. We look forward to continuing working with our partners ADX to further enhance and broaden the market offering of Tabadul as we continue to enhance our mutual market connectivity.”