Press Release Content

Agreement expected to broaden the Abu Dhabi Exchange’s international investor base.

Abu Dhabi Securities Exchange (ADX) and Standard Chartered today signed a custody agreement which will both encourage and facilitate further international investment in Abu Dhabi and broaden the Exchange’s international investor base.

Although custody services are a relatively new product in the Gulf region, this is the third such agreement ADX has signed.

Speaking on the day of the signing, Tom Healy, Chief Executive of ADX explained that this agreement would be of particular benefit to foreign investors, saying: “Currently, only 13% of listed ADX stock is owned by foreign investors, of which 9% is owned by non-GCC nationals. Custody agreements such as these are an important step in developing Abu Dhabi’s capital market, and we expect that number to increase. As more companies list and Abu Dhabi’s dynamic economy continues to grow, more international investors will turn to our market.”

Jeremy Parrish, Chief Executive Officer of Standard Chartered for Abu Dhabi and Al Ain discussed the significance of this agreement for the Bank, saying: “Standard Chartered is one of the very few international banks offering sub-custody services in the GCC region and in response to the country’s great economic advancement, our regional and international clients are showing great interest in UAE securities. Now offering this access to them puts us one step closer to offering a complete suite of products and services.”

A custodian is an integral part of the chain of intermediaries that constitute the investment for foreign institutional investors. While the execution of trade takes place through brokers, a custodian performs key functions such as opening cash and securities accounts, settlement of trades, collection of dividends and safeguarding clients’ assets, apart from management reporting and reconciliations.

A custodian does not provide investment advice but helps in explaining the operational nuances to clients.

Notes and contacts

About ADX

The Abu Dhabi Securities Exchange (ADX) serves the domestic cash equity market and has 65 listed companies with a market capitalisation of US$134 billion as end of June 2008. In 2007, the average daily trading volume increased by more than 400%, with a substantial increase in foreign net investments. ADX is expanding its relationships through a number of Memorandums of Understanding signed with exchanges in the Gulf Cooperation Council (GCC) and Asia Pacific regions.

About Standard Chartered

Standard Chartered PLC, listed on both the London Stock Exchange and the Hong Kong Stock Exchange, ranks among the top 25 companies in the FTSE-100 by market capitalisation. The London-headquartered group has operated for over 150 years in some of the world’s most dynamic markets, leading the way in Asia, Africa and the Middle East. Its income and the number of employees have more than doubled over the last five years primarily as a result of organic growth and supplemented by acquisitions.

Standard Chartered aspires to be the best international bank in its markets through leading by example to be the right partner for its stakeholders. The group now employs 73,000 people, representing 115 nationalities, in more than 1,700 branches and outlets located in over 70 countries. The bank derives more than 90 per cent of its operating income and profits from Asia, Africa and the Middle East, with balanced income derived from both Wholesale and Consumer Banking.

The group is committed to building a sustainable business over the long term and is trusted worldwide for upholding high standards of corporate governance, social responsibility, environmental protection and employee diversity. For more information, please visit: www.standardchartered.com

LATEST PRESS RELEASES