High-level Strategic Partnership Signed between Bahrain Bourse and Abu Dhabi Securities Exchange (ADX) to Unlock Joint Opportunities

Wednesday, November 10, 2021
As part of the official visit of His Royal Highness Prince Salman bin Hamad Al-Khalifa, the Crown Prince and Prime Minister of the Kingdom of Bahrain, to the United Arab Emirates, several cooperation agreements were signed between the Kingdom of Bahrain and the UAE including a strategic partnership between Abu Dhabi Securities Exchange (ADX) and Bahrain Bourse (BHB).
The partnership aims to achieve synergies and greater cross border cooperation to enhance market liquidity, including direct market access and the issuance of Exchange Traded Funds (ETFs).
The parties agreed a strategic plan to implement new measures over the next nine months to strengthen ties between investors based in both countries, and to enable the seamless placement of orders on both securities markets, while reducing transaction costs and enhancing liquidity. Furthermore, ADX and Bahrain Bourse have agreed to implement a number of products and services including ETFs and smart order routing as well as cross-border direct trading, to promote the issuance of low-cost investment vehicles within securities market.
Commenting on this partnership, the Chairman of Bahrain Bourse and Chairman of Bahrain Clear, Abdulkarim Ahmed Bucheery, said: “Bahrain Bourse is pleased to solidify its cooperation ties with ADX. Companies listed on Bahrain Bourse represent a diverse range of industries and offer unparalleled and unique growth opportunities.  Our partnership with ADX will attract new investors and promote a healthy listing deal pipeline.  Bahrain Bourse and Bahrain Clear’s collaboration with ADX will also support the growth of capital markets in the region and support the diversification of GCC economies”.
For his part, ADX Chairman, HE Mohammed Ali Al Shorafa Al Hammadi said: “The alliance between ADX and Bahrain Bourse will strengthen the relationship between the UAE and the Kingdom of Bahrain as well as showcase the high growth opportunities that listed companies on ADX and Bahrain Bourse have to offer to international investors. The meetings serve to deepen those ties and encourage capital market activity, which will provide tangible benefits to the economies of the UAE and the Kingdom of Bahrain”.
Bahrain Bourse’s Chief Executive Officer and Vice Chairman and Managing Director of Bahrain Clear, Shaikh Khalifa Bin Ebrahim Al Khalifa commented: “This strategic collaboration follows our innovative approach to widen cross-border investment opportunities. We aim 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. Innovation sits at the heart of our collaboration, in line with our mandate to evolve the Middle East’s capital market ecosystem, and hence we also aim to promote the listing of ETFs, enable CSD integration in both markets, and automate smart order routing systems. This partnership will enable us to set a blueprint for future regional collaboration and harness each other’s capabilities.”
Chief Executive of ADX, Saeed Hamad Al Dhaheri, commented: “Discussions between ADX and Bahrain Bourse focused on how we can expand market integration and move forward on joint initiatives such as dual listings, ETFs and market access, which will in turn enhance liquidity in both securities markets.  Technology and innovation are at the heart of ADX’s strategy for growth and we look forward to deepening our partnership with other leading regional and global exchanges to bring about mutually beneficial results”.
As part of ADX’s strategy for growth announced at the beginning of the year, the exchange is forging partnerships with global exchanges, offering a broader range of products and services to the market, and investing in state-of-the-art infrastructure.