Abu Dhabi, June 1 (Petra) — Chairman of the Board of Directors of
the Safwa Islamic Bank, Mohammad Abu Hammour, described the
electronic linkage between Jordan’s capital market institutions and
the Abu Dhabi Securities Exchange, which went live on Monday through
the “Tabadul” platform, as an important step that will enhance
liquidity in both markets and broaden their investor base.
He said the linkage opens wider prospects for integration among Arab
capital markets and stock exchanges while providing a gateway to
regional markets through cross-market trading, dual listings and
other forms of cooperation available to financial markets.
In remarks to Petra’s correspondent in Abu Dhabi, Abu Hammour said
the activation of the electronic link between the financial markets
of the two countries will, in the near term, require the issuance of
detailed guidelines addressing questions from investors, banks and
brokerage firms awaiting further information on trading mechanisms,
related fees and commissions, and other operational details. Such
guidance, he said, would facilitate the participation of banks,
brokerage firms and their clients in the electronic trading system,
enabling them to play a leading role and benefit from this positive
cooperation.
He noted that Jordan is the seventh market to join the Tabadul
platform, highlighting the rapid expansion of the initiative and the
broader options it offers companies and banks in trading, dual
listings and other areas.
Abu Hammour added that this advanced step in cooperation between the
two markets comes within the framework of the strategic partnership
and strengthened collaboration between Jordan and the United Arab
Emirates, in line with efforts to develop regional financial markets
and deepen integration among them. He said the initiative would help
expand the investor base and increase access to financial markets
through cross-market trading conducted by brokerage firms operating
between the two exchanges.
The Safwa Islamic Bank chairman said the activation of the electronic
linkage represents an important strategic step toward greater
integration among Arab financial markets. He said it aligns with
longstanding Arab efforts aimed at deepening markets, expanding joint
trading opportunities, and linking exchanges in a way that enhances
liquidity, increases participation and trading activity, and
facilitates the exchange of expertise. It would also improve the
ability of markets to respond to crises affecting capital markets and
enhance transparency and stability, as companies operating within the
Tabadul framework would be required to comply with a broader range of
financial and regulatory standards across participating
jurisdictions.
Abu Hammour stressed the importance of the cooperation, which he said
reflects the direction of the governments of the two countries and
embodies the depth of their strategic and economic ties. He described
the initiative as a new starting point for expanding joint
cooperation and said it is expected to be followed by detailed
guidance for brokerage firms aimed at accelerating activity through
the Tabadul platform and deepening the experience by leveraging the
significant capabilities of both the Amman and Abu Dhabi markets.
He described the Tabadul platform as an advanced model of integration
among financial markets, as it provides investors and brokerage firms
with easier access to member exchanges through a sophisticated and
secure trading environment.
Abu Hammour said this type of cooperation enhances the attractiveness
of the partner markets participating in the platform, serves the
strategic interests of both markets, and opens the door to additional
liquidity from Arab markets to be invested in Jordan’s stock market,
which he said offers promising opportunities through a solid base of
companies operating under sound corporate governance standards.
He noted that the electronic linkage with the Abu Dhabi Securities
Exchange comes at a time when the Amman Stock Exchange has achieved
record figures and listed companies have reported historic profits,
supported by positive economic indicators despite regional
challenges. He said these developments strengthen confidence in
Jordan’s investment environment and financial market, supported by
government reform and incentive policies, financial, monetary and
political stability, and the implementation of major projects.
The Tabadul platform, launched by the Abu Dhabi Securities Exchange
in 2022, includes the Muscat Stock Exchange, Bahrain Bourse, Astana
International Exchange, Kazakhstan Stock Exchange and Armenia
Securities Exchange, in addition to the Amman Stock Exchange and the
Abu Dhabi Securities Exchange. On Dec. 11, 2024, the Amman Stock
Exchange and the Securities Depository Center signed an electronic
linkage agreement with the Abu Dhabi Securities Exchange in Abu Dhabi
to join the platform. The two exchanges announced on Monday the
official launch of the electronic connection through the platform.
//Petra// AF
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