Traded values on Abu Dhabi Securities Market (ADX) increased 407 percent to AED739 billion in 2021, driven by higher levels of domestic and international investment.
Local investors accounted for 70 percent of the exchange’s traded value, while foreign institutional investors accounted for 30 percent.
Net foreign investment on Abu Dhabi Securities Exchange reached AED15 billion in 2021, the highest level recorded in the exchange’s history, a statement said.
It added that the market value of shares owned by foreign investors in 2021 doubled to AED156 billion compared to 2020, while those held by UAE nationals reached AED1.5 trillion compared to AED685 billion, an increase of 117 percent.
At the same time, the number of new investors who registered on the exchange in 2021 increased by 702 percent to 18,938 while the number of new institutional investors increased 77 percent to 708.
The increased demand for Abu Dhabi stocks helped propel the exchange’s benchmark index 64 percent higher, making the measure one of the world’s best-performing equity gauges in 2021.
Meanwhile, the market capitalisation of stocks listed on ADX more than doubled to a record AED1.6 trillion.
Underpinning the exchange’s bumper year has been the roll out of the ADX One strategy, announced at the beginning of 2021.
The strategy comprises 22 initiatives to bolster corporate governance and meet the evolving needs of global issuers and investors.
As part of the strategy, ADX introduced a derivatives market in the fourth quarter, which paved the way for an agreement with FTSE Russell to develop co-branded indices.
As of January 10, the FTSE ADX General Index replaced the ADX General Index and FTSE ADX sector indices superseded the existing sector indices.
The exchange has also established a framework for listing Special Purpose Acquisition Company (SPAC) on ADX, which was approved by the Securities and Commodities Authority (SCA) in January.
Hisham Khalid Malak, chairman of ADX, said: “Last year will be remembered as one of the exchange’s most successful years, thanks to the proactive approach of the exchange’s management and the seamless execution of the ADX One Strategy. Throughout 2021, the management of ADX energetically encouraged the listing pipeline and introduced new products and services, making the exchange and Abu Dhabi a magnet for international investment.”
Saeed Hamad Al Dhaheri, managing director and CEO of ADX, added: “Even as the global economy adjusted to the impact of the Covid-19 pandemic, the Abu Dhabi Securities Exchange continued to deliver innovative products and services to draw more issuers and investors to our marketplace.
“In 2022, we will continue to move forward with the ADX One strategy and encourage the listings pipeline, which remains buoyant and healthy amid the improving macroeconomic environment.”
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