The Abu Dhabi Securities Exchange (ADX) and the Bahrain Bourse (BHB) have signed a strategic partnership deal to achieve synergies and increase cross-border cooperation in order to improve market liquidity and encourage the issuing of low-cost investments.
The parties agreed to implement new measures over the next nine months to deepen relations between investors in both countries by allowing seamless order placement on the securities exchanges and lowering transaction costs.
ADX and BHB have also agreed to launch a number of products and services as part of the deal, including Exchange Traded Funds (ETFs), smart order routing, and cross-border direct trading.
The ADX is developing alliances with global exchanges, delivering a greater choice of products and services to the market, and investing in state-of-the-art infrastructure as part of its expansion strategy, which was unveiled at the start of this year.
“The alliance between ADX and Bahrain Bourse will further enhance the relationship between the UAE and the Kingdom of Bahrain, showcasing the high growth opportunities on both exchanges and encouraging capital market activity through the introduction of innovative products and services. In turn, this will provide tangible benefits to the economies of the UAE and the Kingdom of Bahrain.”
Bahrain Bourse’s CEO and Vice Chairman and Managing Director of Bahrain Clear, Shaikh Khalifa Bin Ebrahim Al Khalifa stated that this strategic collaboration follows its innovative approach to widen cross-border investment opportunities. It aims to develop seamless offers to investors and to provide enhanced access with unmatched efficiency workflow in both markets whilst reducing transaction costs and bolstering market liquidity.
Commenting on this partnership, Mr. Abdulkarim Ahmed Bucheery, the Chairman of Bahrain Bourse and Bahrain Clear remarked that, “Bahrain Bourse is pleased to solidify its cooperation ties with ADX. Bahrain Bourse and Bahrain Clear’s collaboration with ADX will support the growth of capital markets in the region and support the diversification of GCC economies.”
Related: CBUAE’s new mBridge project report emphasizes cross-border fund transfer