Abu Dhabi bourse signs pact with NYSE for dual listings

“Giving ADX-listed companies access to the US marketplace we think will benefit them as well,” John Tuttle, vice chairman of the NYSE, told Bloomberg News in an interview.

Abu Dhabi Securities Exchange has signed a deal with the New York Stock Exchange to help the emirate’s stocks access a deeper pools of liquidity via dual listings.

The pact would also allow companies listed on the NYSE to expand their business and tap capital in Abu Dhabi, John Tuttle, the vice chairman of the NYSE, told Bloomberg News in an interview. “Giving ADX-listed companies access to the US marketplace we think will benefit them as well.”

The Middle East has seen a surge in initial public offerings, buoyed by high oil prices and investor inflows. The flurry of activity has prompted global banks to increase their presence by relocating staff or expanding.

Tuttle added that the agreement with ADX would provide “access to the world’s largest marketplace.” “We see myriad opportunities for collaboration from corporate equities to ETFs, ESG-related products as well.”

Americana, the Middle Eastern operator of KFC and Pizza Hut, last year raised $1.8 billion for its shareholders in the first-ever dual-listing in Riyadh and Abu Dhabi.

The memorandum of understanding will help provide accessibility and visibility for Abu Dhabi’s exchange, bolstering liquidity, said Abdulla Salem Alnuaimi, the Gulf bourse’s chief executive officer.

Thursday’s MOU follows a deal with Intercontinental Exchange’s ICE Global Network for direct market access to global institutional investors. Alnuaimi said both the deals will help provide accessibility and visibility for Abu Dhabi’s exchange, bolstering liquidity, he said.

Even after the outbreak of the war between Israel and Hamas just over month ago, listings in the Persian Gulf have performed well and attracted strong demand. That’s expected to continue into next year, according to Alnuaimi.

“I think we’ll see a positive pipeline during this year and next year on the ADX,” he added.