Move makes exchange one of Gulf region's least expensive stock markets
Abu Dhabi Securities Exchange (ADX) is reducing its trading commission by 50-90 percent.
As from July 1, the ADX cost for annual transactions of less than AED250 million ($68m) will be five basis points (0.05 percent) of the transaction value. For transactions in excess of AED1 billion ($272m) over the period of one year, the cost will range to one basis point.
This means that an investor who trades AED500m ($136m) a year will be charged five basis points over the first AED250m and then a commission lower than AED250m during the year, according to a report on Emirates News Agency (WAM).
The exchange’s trading commission has also been reduced for transactions exceeding AED1bn by 90 percent from the previously implemented transaction fees, which makes ADX one of the region's least expensive stock markets in terms of trading commission.
Khaleefa Al Mansouri, ADX acting chief executive, said: “Through this initiative and the introduction of other investment opportunities, the Abu Dhabi Securities Exchange is providing additional incentives for both local and international investors to invest on the Exchange providing liquidity into the market and helping to finance listed companies’ projects which will support the expanding of their business.”
The new initiative is a key step towards achieving the Ghadan 2021 plan's objective of removing barriers and lowering the cost of doing business in Abu Dhabi.
The number of institutional investors in the ADX at the end of May 2019 was 8,395, including 6,318 foreign investors. During the first five months of this year, institutional investors traded AED1.5 billion ($408m) compared to AED890m ($242m) in the same period of 2018, an increase of 73 percent.