The Abu Dhabi Securities Market (ADSM) Leadership Forum will be held on Wednesday 7 March 2007 under the patronage of HH General Sheikh Mohammed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces, and Chairman of the Abu Dhabi Executive Council. This event will be the first Forum to evaluate the challenges and opportunities of exchange traded funds (ETF’s) in the region.
“The ADSM Leadership Forum is an initiative designed to introduce new concepts in a public forum and in the presence of international experts”, said Rashed Al Baloushi, Acting Director General of ADSM. “This will allow us all to share our knowledge and experience and ultimately find solutions to help our financial markets develop and grow.
“In order to continue our growth and development, ADSM needs more investment vehicles.” He continued. “These will attract institutional investors and give retail investors more opportunity to diversify.”
An ETF is a form of collective investment scheme that tracks an index or market sector. It is managed as a company whose objective is to achieve the same return as a particular market index or sector. In that way, it is similar to an index fund except that it is listed on a stock exchange.
“We would like to see ETF’s established in our market”, Mr Al Baloushi explained. “They are a cost-effective way for retail investors to diversify and therefore spread their risk. This is because an investor can access a whole portfolio of stock through just one security. We also believe Exchange Traded funds are a well suited vehicle for the maturity of our market.
Mr Al Baloushi concluded by saying that the Leadership Forum was the latest in a number of initiatives introduced by ADSM as part of its international best practices programme:
“As an exchange, we have a responsibility to maintain the highest standards of transparency and integrity in our financial markets.
“This is why we have recommended a corporate governance code for the UAE, this is why we have recommended introducing Trust and Custody laws and a code of ethics for fund managers to protect unit holders and this is why we have introduced compulsory professional training programmes for our brokers.
“All our initiatives are designed to maintain the long-term stability of our market and attract international institutions to Abu Dhabi. We would like to see Abu Dhabi become the asset management hub of the Middle East.”
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.
For more information about the ADSM Leadership Forum please go to www.adsmleadershipforum.com.
