StanChart deal to help promote Abu Dhabi bourse abroad

TREND BUCKER: Abu Dhabi Securities Exchange (pictured) has risen seven percent this year. (Getty Images)

Abu Dhabi Securities Exchange (ADX) said on Wednesday it has signed a "custody agreement" with Standard Chartered that would help promote the Gulf Arab bourse to foreign investors.

As custodian, the lender's role would include opening cash and securities accounts, settlement of trades, collection of dividends and safeguarding clients' assets, the bourse said in a statement.

About 13 percent of stocks listed on the ADX stocks are held by foreign investors, ADX Chief Executive Tom Healy said in a statement announcing the custody agreement.

"As more companies list and Abu Dhabi's dynamic economy continues to grow, more international investors will turn to our market," Healy said.

The United Arab Emirates, the second-largest Arab economy and the world's fifth-biggest oil exporter, estimates the economy expanded 5.2 percent in real terms last year, according to economy ministry data. Abu Dhabi is one of seven emirates in the federation.

The bourse has launched a series of roadshows in Singapore and Tokyo this year to attract international investment. It also had similar roadshows in London and New York last year.

Abu Dhabi's main index has gained more than 7 percent this year. (Reuters)

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