Plans to create a regional derivatives market by the Abu Dhabi Securities Market (ADX) have been put on the back burner due to the financial crisis, the exchange's chief executive said on Monday.
Rashed al Baloushi also said new initial public offerings (IPOs) are unlikely to be launched until investor confidence is restored and with further economic recovery.
The ADX initiated plans at a GCC level to create a derivatives market about 3 years ago when the financial crisis took hold, he told the MEED Abu Dhabi Conference.
He said: "It was not the right time because derivates were blamed. So we decided to reprioritise and shifted it back."
Nor are any IPOs likely to hit the market soon, after two companies postponed plans earlier this year.
He said: "We expect an IPO to come back when confidence comes back and the economy starts growing."
He further added, there are no bonds listed yet on the ADX but the exchange has the structure and legal framework ready for their listing.
He said, set up in late 2000, ADX is the youngest stock exchange in the Gulf with shares of 66 companies listed currently and an investor base of 890,000, mostly retail investors. (Reuters)For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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