First Abu Dhabi Bank (FAB), the UAE’s largest bank and one of the world’s largest and safest financial institutions, has become the first registered Omnibus Account Operator with the Dubai Central Securities Depository (Dubai CSD), following the recently published Omnibus Account rules from Dubai CSD.
The Omnibus Accounts model enables clients to access Dubai CSD-eligible securities through a pooled account, reducing market entry requirements and eliminating the need for Power of Attorney for general meetings and voluntary events from the beneficial investor. Dubai CSD looks forward to working with other regulated eligible entities to open omnibus accounts to hold and trade securities on behalf of beneficial owners through a single investor number (NIN).
FAB has played an active role in developing the Omnibus regulations in the UAE, providing formal feedback and suggestions to the Securities & Commodities Authority (SCA), and engaging in ongoing discussions regarding the proposed operating mechanisms with the depositories.
“We are pleased to have partnered with SCA and the Dubai CSD to formalize the Omnibus Account structure in the UAE, and we are equally delighted to be the first to offer this service. One of FAB’s core objectives is to collaborate with the local market infrastructure to create the most efficient conditions for our Global Intermediary clients and local investors to access the UAE market. The introduction of the DFM omnibus account structure is a great example of such an initiative. We believe this is a positive initial step that will particularly assist local asset managers and international broker-dealers with their operational activities with the UAE markets.”
Mr. Hamed Ali, CEO of DFM and Nasdaq Dubai, said that “We welcome the efforts of FAB, to become the first registered Omnibus Account Operator and to be a catalyst in the development of Omnibus regulations in the UAE. This is an integral part of our goal to promote the growth of capital markets in Dubai and drive its development in line with our international peers. Through this initiative, we aim to provide investors with greater participation and access to diversified investment opportunities in Dubai’s capital markets, while enabling them to achieve significant operational and cost efficiencies.”
The introduction of DFM Omnibus Accounts meets the market accessibility and market quality requirements of the MSCI Market Accessibility Criteria.