Abu Dhabi Securities Exchange (ADX) and the Luxembourg Stock Exchange (LuxSE) have joined forces to strengthen their collaboration and create new opportunities for growth and sustainable economic development. The two institutions recently signed a Memorandum of Understanding (MoU) to establish a framework for cooperation.
The primary objective of the MoU is to facilitate the dual listing of a wide range of financial instruments and maximize access to investors from Europe, the Middle East, and other international markets. This collaboration aims to enhance pre- and post-listing services, provide training programs to promote awareness of sustainable debt products, and leverage environmental, social, and governance (ESG) data to improve engagement between issuers and investors.
Abdulla Salem Al Nuaimi, Chief Executive Officer of ADX, emphasized the importance of building partnerships and relationships with other exchanges as a key factor in ADX’s growth strategy. The MoU with LuxSE signifies ADX’s commitment to collaboration, sustainable finance, knowledge sharing, bilateral investments, and expanding the investor base for bond and sukuk issuers in ADX. Al Nuaimi also highlighted LuxSE’s diversified product offering, active equity capital markets, and extensive network as valuable assets that will enhance liquidity and activity on ADX.
Julie Becker, CEO of LuxSE, expressed her delight in formalizing the cooperation with ADX through this MoU. LuxSE, known as the world’s leading exchange for the listing of international debt securities, has a strong focus on international cooperation and sustainable finance. LuxSE works closely with selected exchanges worldwide to create interconnected capital markets and facilitate access to the international investment community for issuers globally. Becker believes that cross-regional collaboration is pivotal in establishing sustainable and interconnected capital markets.
The partnership between ADX and LuxSE demonstrates the growing importance of collaboration in the global financial landscape. By working together, the two exchanges aim to create more opportunities for growth, innovation, and sustainable economic development. The MoU will enable issuers from both regions to benefit from increased visibility, enhanced liquidity, and access to a broader investor base. Additionally, the cooperation will foster knowledge exchange and the adoption of best practices in sustainable finance.
The dual listing of financial instruments will allow issuers to tap into multiple markets simultaneously, attracting a wider range of investors and boosting capital flows. By expanding pre- and post-listing services, ADX and LuxSE aim to streamline the listing process, provide comprehensive support to issuers, and ensure a seamless experience for investors. The collaboration will also focus on promoting sustainable debt products and raising awareness about their importance in driving environmentally and socially responsible investments.
One significant aspect of the partnership is the utilization of ESG data to enhance issuer and investor engagement. By leveraging ESG metrics, ADX and LuxSE aim to promote sustainable investing, encourage transparency, and drive positive change in the corporate sector. This collaboration will help companies in both regions align their business practices with ESG principles, thereby attracting responsible investors who prioritize sustainability.
The MoU between ADX and LuxSE marks a significant milestone in their ongoing efforts to strengthen international ties and foster cross-border investment opportunities. The partnership will not only benefit issuers and investors but also contribute to the development of robust and sustainable capital markets in Abu Dhabi and Luxembourg. Through their collaboration, ADX and LuxSE aim to set an example for other exchanges worldwide, showcasing the value of cooperation, innovation, and sustainability in driving economic growth.
