ADX Solidifies Its Status Among Top 20 Global Bourses In 2024 With Significant Growth

The Abu Dhabi Securities Exchange (ADX) has strengthened its position as a prominent financial market both regionally and globally in 2024. It achieved notable milestones in global rankings, trading activity, listings, digital transformation, and international expansion. ADX maintained its status as the second-largest bourse in the region and secured a spot among the world's top 20 stock exchanges.

Trading on ADX saw significant growth, with the total value of trades rising by 7% compared to 2023, reaching AED342 billion. Net foreign investment was AED24 billion, highlighting the market's strong appeal to international investors. Foreign investors contributed to about 40% of total trading activity, with combined buying and selling transactions amounting to AED262 billion.

Institutional investors played a major role, accounting for 80% of the trading volume. The derivatives market also expanded significantly, with transactions increasing by 154%. This growth reflects ADX's robust performance and attractiveness to various investor segments.

In terms of listings, ADX added 28 new securities in 2024, bringing the total number of listed securities to 187. The exchange ranked among the top five globally for initial public offering (IPO) proceeds, raising approximately US$3.35 billion. ADX captured 38% of total IPO proceeds in the Middle East and dominated with 80% within the UAE.

Digital Transformation Initiatives

As part of its digital transformation strategy, ADX enhanced its technological infrastructure by launching five advanced systems: a new website, a mobile application, an advanced customer relationship management system, a systems integration platform, and a comprehensive data platform. Additionally, it introduced a state-of-the-art call centre to improve investor experience.

ETF Sector Leadership

ADX further solidified its leadership in the exchange-traded fund (ETF) sector. The number of listed ETFs increased to 15, including five introduced in 2024. The total trading value of these ETFs reached AED2 billion. Notably, ADX became the first in the Gulf region to list a bond ETF, setting a new benchmark for fixed-income investments.

Market Indices Growth

Market indices showed strong growth with the ADX General Index rising by 85% since January 2020. This performance outpaced the MSCI Emerging Markets Index. To cater to growing demand for Sharia-compliant investments, ADX launched the FTSE ADX 15 Index (FADX 15). The market capitalisation of Sharia-compliant financial instruments listed on ADX exceeded AED2.6 trillion.

Global Expansion Efforts

On the global front, five new financial markets joined the Tabadul platform in 2024. This expansion enhanced ADX’s international presence by providing access to 490 listed companies and over 6.5 million investors while facilitating IPO subscriptions across member markets.

Investor participation continued to grow with registered investors surpassing 1.16 million by year-end. This increase underscores strong foreign investor interest in ADX's offerings.

Awards and Recognition

ADX concluded 2024 with several prestigious awards recognizing its achievements. It received the Best Arab Stock Exchange Award from the Arab Federation of Capital Markets for outstanding performance and price-to-earnings ratio that boosted investor confidence.

Additionally, it was honoured with the Best Arab Exchange Award for ESG Integration acknowledging leadership in sustainability initiatives. The Global Islamic Finance Awards (GIFA) named it Best Islamic Stock Exchange for providing Sharia-compliant financial instruments valued at AED2.6 trillion.

The exchange also hosted MEIRA's Annual Conference reinforcing commitment to transparency and best practices in investor relations while continuing efforts towards excellence across various domains within financial markets.

With inputs from WAM