Abu Dhabi Securities Market (ADSM) and Lahore Stock Exchange (LSE) today signed a Memorandum of Understanding (MoU) in a move that will pave the way for Lahore listed companies to dual list on ADSM.
This MoU follows that signed by ADSM and the Central Depository Company (CDC) of Pakistan earlier this year and further supports ADSM’s drive to encourage increased trading activity from international investors, as well as foreign companies looking to list.
The Pakistan Business Council arranged the MOU between the LSE and ADSM, playing a vital role in bringing the two organizations together with the objective to develop the capital markets of UAE and Pakistan.
ADSM currently has more than 2226 Pakistani investors registered, with investments worth AED 45 million. Companies in the banking and telecommunications sectors are likely to list on ADSM in 2007.
Rashed Al Baloushi, Acting Director General of ADSM, explained the significance of this agreement to both the Pakistan and Abu Dhabi markets and said he looked forward to welcoming companies from Lahore to Abu Dhabi.
“Our agreement with Pakistan’s CDC has been a huge success in setting the ground for further co-operation with Pakistan,” said Mr Al Baloushi. “I am delighted to announce that we can take this one step further and sign an agreement directly with the Lahore Stock Exchange.
“Abu Dhabi is not only a home to a large number of Pakistanis, but is also a significant investor in Pakistani companies. This agreement will now make it possible for Pakistani companies to list on ADSM.
“We will work closely with the LSE as we implement our best practices programme. This programme is improving the regulation and governance standards in the UAE financial markets and encouraging international investors to evaluate our market. We hope that, through this, Abu Dhabi will become the asset management hub of the Middle East.”
Mr. Al Baloushi went on to explain how agreements such as these are part of ADSM’s international best practices programme and said that as more international companies are drawn to Abu Dhabi, it would enable investors to spread their risks.
“We have taken a number of steps recently to help foreign investors who want to benefit from the opportunities available in our market,” He said.
“We signed a custody agreement with an international bank, and through a number of other agreements with foreign exchanges, ADSM is now a gateway to financial markets in the region.”
Mr. Ibrar Mumtaz, President of Lahore Stock Exchange, said, “There are many companies in Pakistan that want to list in the UAE and we look forward to working with ADSM to achieve this. We are thankful to the Pakistan Business Council for inviting us to the UAE and arranging meetings with ADSM and encouraging us to interact with ADSM for the development of trade, commerce and investment activities between the UAE and Pakistan.”
Dr. S. Qaiser Anis, President of Pakistan Business Council UAE mentioned that “the relationship between UAE and Pakistan has been brotherly for a number of years. Agreements such as these open up new dimensions of business in capital markets.” He also congratulated ADSM and LSE for this partnership.
Mr Al Baloushi concluded by encouraging Lahore-based companies to seek a dual listing with ADSM, highlighting the excellent opportunities for raising capital in the region.
Since the end of 2001 the number of listed companies traded on ADSM has grown fourfold; there are now nearly six times as many brokerage firms; the aggregate market capitalisation of companies traded on the exchange is 20 times higher; there are 50 times as many shareholders registered and ADSM is a model emiratisation employer with UAE nationals making up about 74% of staff.
