Abu Dhabi Securities Exchange (ADX) saw a robust beginning to 2025, showcasing a daily trading volume increase of over 27.5 percent compared to the same timeframe last year, as reported by Abdulla Salem Al Nuaimi, CEO of ADX.
Al Nuaimi also emphasized a remarkable rise of more than 30 percent in the number of investors since the start of the year, signifying an increasing level of confidence and interest in the market.
In remarks made to the Emirates News Agency (WAM), Al Nuaimi stated, “We have the most active ETF market in the region and the most active derivatives market in the region, which saw a significant 150 percent increase last year.”
The CEO further noted that there have been two listings so far this year, one of which is the Chimera iBoxx US Treasury Bill ETF, listed on February 20, alongside a public joint-stock company expected to debut next month. He is optimistic about additional listings in the first half of 2025.
In a bid to boost market infrastructure and improve trading efficiency, ADX introduced the “New ADX Group” on Monday, which encompasses two new entities: Abu Dhabi Clear (AD Clear) and Abu Dhabi Depository (AD CSD).
Continued global recognition
ADX continued to reinforce its position as a leading financial market both regionally and globally in 2024, achieving notable milestones in global rankings, trading activity, listings, digital transformation, and international expansion. The exchange held its status as the second-largest bourse in the region, further solidifying its ranking among the world’s top 20 stock exchanges.
It was also positioned eighth among emerging markets, with a total market capitalization reaching AED2.9 trillion ($799 billion). Trading activity experienced significant growth, with the total value of trades increasing by 7 percent compared to 2023, amounting to AED342 billion. Net foreign investment reached AED24 billion, underscoring the market’s strong appeal to international investors.
Foreign investors represented approximately 40 percent of total trading activity, with combined buying and selling transactions totaling AED262 billion. Institutional investors dominated 80 percent of the trading volume, while the derivatives market saw substantial expansion, with the number of transactions surging by 154 percent.
New securities and IPO success
Regarding listings, ADX welcomed 28 new securities in 2024, raising the total number of listed securities to 187. The exchange ranked among the top five globally in terms of initial public offering (IPO) proceeds, with IPOs generating approximately $3.35 billion. ADX captured 38 percent of the total IPO proceeds in the Middle East and 80 percent of the proceeds within the UAE.
As part of its digital transformation strategy, ADX improved its technological infrastructure by launching five advanced systems: a new website, a mobile application, an advanced customer relationship management system, a systems integration platform, and a comprehensive data platform. Additionally, it introduced a state-of-the-art call center to enhance the investor experience.
Leadership in ETFs
ADX further solidified its leadership in the exchange-traded fund (ETF) sector, with the number of listed ETFs increasing to 15, including five launched in 2024. The total trading value of these ETFs reached AED2 billion. The exchange also became the first in the Gulf region to list a bond ETF, establishing a new benchmark for fixed-income investments.
Market indices exhibited strong growth, with the ADX General Index rising by 85 percent since January 2020, outperforming the MSCI Emerging Markets Index. ADX also introduced the FTSE ADX 15 Index (FADX 15) to cater to the growing demand for Sharia-compliant investments. The market capitalization of Sharia-compliant financial instruments listed on ADX exceeded AED2.6 trillion.
On the global expansion front, five new financial markets joined the Tabadul platform, further enhancing ADX’s international presence. The platform now offers access to 490 listed companies and a network of over 6.5 million investors, while also facilitating subscriptions to IPOs across member financial markets.
Investor participation in ADX continued to grow, with the number of registered investors surpassing 1.16 million by the end of 2024, reflecting strong interest from foreign investors. The exchange also hosted the 16th Annual Conference of the Middle East Investor Relations Association (MEIRA), reinforcing its commitment to transparency and best practices in investor relations.
Recognition and awards
ADX concluded 2024 with a series of prestigious awards, including the Best Arab Stock Exchange Award from the Arab Federation of Capital Markets, recognizing its exceptional performance and price-to-earnings ratio, which promoted investor confidence. It also received the Best Arab Exchange Award for ESG Integration, acknowledging its leadership in sustainability initiatives. Additionally, ADX was named Best Islamic Stock Exchange for 2024 by the Global Islamic Finance Awards (GIFA) for its accomplishments in providing Sharia-compliant financial instruments, which collectively have a total market capitalization of AED2.6 trillion.
