ADX Signs Strategic Agreement with Amman Stock Exchange and Jordan Securities Depositary Center to Boost Regional Financial Integration via Tabadul Hub
The Abu Dhabi Securities Exchange (ADX) recently signed a significant agreement with the Amman Stock Exchange (ASE) and the Jordan Securities Depositary Center (SDC). This partnership aims to strengthen cross-border trading in the Middle East. Under this agreement, the ASE will be integrated into the Tabadul Digital Exchange Hub. This innovative platform is designed to streamline regional financial markets. It will make accessing various markets easier for traders.
The Signing Ceremony Abu Dhabi Securities Exchange
The agreement was formalized during a ceremony at the Middle East Investor Relations Association (MEIRA) Conference in Abu Dhabi. The addition of ASE marks the eighth exchange to join the expanding Tabadul network. This follows the recent inclusion of the Armenia Securities Exchange. The integration of ASE into the Tabadul Hub is viewed as a significant advancement in creating a more efficient regional financial ecosystem.
What is Tabadul?
Launched by ADX in July 2022, Tabadul is the first digital exchange hub in the region. It employs a mutual market access model. This enables seamless cross-border trading by connecting member exchanges. The platform allows brokerage firms to engage with markets throughout the region. This connection enhances liquidity while also reducing operational risks and creating new investment opportunities for investors.
Benefits for Investors
With the ASE now linked to Tabadul, investors in both Amman and the UAE will gain improved access to a wider array of securities and investment opportunities. This integration will make it easier for investors to participate in Initial Public Offerings (IPOs) and other financial offerings across member exchanges. As a result, the financial connectivity between Jordan and the UAE is set to improve. This collaboration aims to create new opportunities for investors in both markets. It also contributes to greater regional economic integration.
Statements from ADX CEO
Abdulla Salem Alnuaimi, the Group CEO of ADX, expressed excitement about the new partnership. He stated, “We are pleased to welcome the Amman Stock Exchange and the Jordan Securities Depositary Center as our newest Tabadul Hub member.” He elaborated on how this addition strengthens efforts to advance financial market integration in the region. “It will provide investors with enhanced access to diversified investment opportunities in important growth markets like Jordan.” He also noted ADX’s commitment to fostering innovation through collaborations that align with the vision of creating a globally integrated financial ecosystem.
Growth of the Tabadul Initiative
The inclusion of ASE comes at a time of rapid growth for the Tabadul initiative. As of 2024, Tabadul connects over 6.5 million investors to its member exchanges. There are now more than 330 listed companies across the participating markets. The initiative has also seen a remarkable increase in trading activity, doubling compared to 2023. This underscores its growing influence in regional financial markets and its ability to facilitate cross-border capital flows.
ASE Leadership’s Perspective
Mazen Wathaifi, CEO of the Amman Stock Exchange, highlighted the strategic importance of the agreement. He spoke about how it aligns with ASE’s broader objectives to enhance openness to global financial markets and increase liquidity. Wathaifi stated, “The signing of this agreement with ADX reflects the strong and strategic partnership between our two countries.” He emphasized the commitment to strengthening the liquidity and depth of the financial market. He is optimistic that this partnership will facilitate Arab and foreign investments into Jordan’s market, aligning more closely with the global financial community.
Benefits for the Jordan Securities Depositary Center
For the Jordan Securities Depositary Center (SDC), this agreement is a crucial step in enhancing operational capabilities within Jordan’s financial markets. Sarah Tarawneh, CEO of SDC, explained how the agreement will improve cross-border trading and post-trade operations. She noted it supports account opening procedures, simplifies financial settlements, and reduces operational costs and risks. Tarawneh believes these improvements will offer a broader range of investment opportunities for investors while facilitating smoother transactions across markets.
A Growing Network
The Tabadul Hub currently boasts a growing network of exchanges. This includes ADX, Bahrain Bourse (BSE), Muscat Stock Exchange (MSX), Kazakhstan Stock Exchange (KASE), Astana International Exchange (AIX), Tajikistan’s Central Asian Stock Exchange (CASE), Armenia Stock Exchange (AMX), and now the Amman Stock Exchange. Together, these exchanges provide a wealth of investment opportunities to both regional and international investors. This further establishes Tabadul’s role as a key player in the Middle East’s financial landscape.
Looking Ahead
As the region continues to evolve as a global financial hub, the integration of new exchanges into Tabadul is expected to drive further innovation and collaboration. This will facilitate the movement of capital and foster economic growth. With its expanding network, Tabadul is on track to become a vital platform for cross-border financial activity. It is set
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