To enhance liquidity and stability in the UAE’s financial markets, Finance House and Finance House Securities have entered into a new agreement at the Abu Dhabi Securities Exchange (ADX).
This collaboration aims to boost liquidity in the local market and strengthen financial stability, aligning with the vision and strategies of the Abu Dhabi Securities Exchange.
As part of the agreement, Finance House will infuse AED300 million ($81.67 million) into the local market through Finance House Securities, which will facilitate increased investments and enhance equity market liquidity.
T.K. Raman, CEO, Finance House, highlighted that the agreement underscores their dedication to offering solutions that adhere to best practices. He mentioned that their objective is to improve liquidity and stability in the financial markets while promoting economic activity within the UAE.
Innovation and economic growth
Raman also emphasized that innovation is key to success in the markets, noting that the accomplishments of the Abu Dhabi Securities Exchange are vital for driving economic growth and sustainable development in the UAE, as well as instilling investor confidence and stimulating a wider economic landscape.
Optimizing financial resources
Ayman Al Khatib, general manager and managing director, Finance House Securities, stated that the agreement represents a crucial advancement in optimizing Finance House’s financial resources, enhancing operational efficiency at Finance House Securities, and promoting better capital utilization. He expressed optimism about a lasting positive impact on the markets.
This partnership reflects a shared commitment to fostering economic development in the UAE and empowering the market to achieve sustainable growth.
Financial education initiative launch
Earlier in October, the Abu Dhabi Securities Exchange (ADX) announced the launch of a citywide campaign titled ‘Understanding Financial Investment and How to Invest in the Securities Market’. This initiative aims to enhance its commitment to ESG by promoting inclusive financial education and strengthening financial and investment knowledge throughout the emirate’s business ecosystem and community.
The announcement coincided with ADX’s participation in the global **Ring the Bell for Financial Literacy** initiative, led by the International Organization of Securities Commissions (IOSCO) and supported by the World Federation of Exchanges (WFE). This initiative focuses on advancing financial literacy and protecting investors.
Workshops and educational outreach
The financial education program will feature a series of workshops organized in collaboration with ADX member firms. Recently, ADX and its broker partner, BHM Capital, conducted two workshops with ADNOC Distribution and the Abu Dhabi Department of Economic Development (DED). These sessions covered a wide array of topics, including an introduction to securities markets and the significance of investments. They also addressed investment strategies, risk management, and identifying investment opportunities in publicly listed companies.
Furthermore, this financial education initiative complements ADX’s ongoing efforts to engage with local academic institutions, universities, and business associations to enhance investment knowledge and elevate financial literacy across the UAE.
Expanding partnerships for financial literacy
ADX is actively seeking additional partnerships with other prominent organizations in the UAE to broaden the scope of its financial literacy initiatives. Moreover, by expanding its educational outreach, ADX aims to cultivate a more inclusive investment environment that aligns with Abu Dhabi’s overarching vision of sustainable economic diversification.
Significant market transactions
Additionally, in October 2024, the Abu Dhabi Securities Exchange reported the completion of 15 significant direct transactions involving shares of ADNOC Gas Plc and Modon Holding PSC, totaling AED2.66 billion (approximately $724.2 million). According to ADX data, the first transaction involved around 505.8 million shares of Modon Holding, valued at AED2.44 billion through six major deals, executed at a price of AED4.83 per share. The second transaction included approximately 71.5 million shares of ADNOC Gas, worth AED218.2 million through nine major transactions, with an execution price of AED3.05 per share.
Also, these substantial direct transactions occur outside the order book, meaning they do not affect the closing price of the company’s shares or the price index. In addition, they do not influence the highest and lowest prices recorded during the trading session or over the previous 52 weeks.
Corporate rebranding announcement
Moreover, in September, ADX announced that Bayanat AI PLC has officially rebranded as Space42 PLC following its merger with Al Yah Satellite Communications Company PJSC, effective October 1, 2024. Trading of the new shares for Bayanat AI PLC commenced on October 1, while the last trading day for shares of Al Yah Satellite Communications Company PJSC was September 30.
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