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Abu Dhabi Securities Exchange Foresees Continued Growth; Launches ESG Index

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Salman Khan
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Abu Dhabi Securities Exchange Foresees Continued Growth; Launches ESG Index

In a recent announcement, the Abu Dhabi Securities Exchange (ADX) anticipates a continued upward trajectory with manifold new listings and subscriptions scheduled for 2024. This projection was made by the CEO of ADX, Abdullah Salem Al Naimi, during the launch of an Environmental, Social, and Governance (ESG) index at Abu Dhabi Finance Week. He revealed that the ADX has sustained its robust activity throughout the current year, following the marked growth in listings and subscriptions in 2022.

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ADX's Role in Global Investments

The new listings and subscriptions are a testament to the pivotal role of ADX as an intermediary connecting investors with corporations and cultivating growth opportunities. This role reinforces the United Arab Emirates (UAE) and Abu Dhabi’s standing on the international investment map. The ADX has seen listings of shares such as 'ADNOC Gas', 'Borouge', 'ADNOC Distribution', and 'Investcorp Capital'. Additionally, the 'Fenix Group' is scheduled to be listed on December 5th. The 'Pure Health' group has also disclosed its plan for an initial public offering and subsequent listing on ADX in December 2023, subject to regulatory and legal approvals.

The ESG Index: A Step Towards Sustainable Investments

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The launch of the new ESG index by ADX coincides with the UAE's preparations to host the United Nations Climate Change Conference (COP28). Developed in partnership with 'FTSE Russell', the ESG index aims to bolster sustainable investment practices in the region. It offers investors a reliable standard for corporate governance and social and environmental responsibility. Al Naimi stressed that the index employs a comprehensive methodology to gauge the adoption of best ESG practices by public joint-stock companies listed on ADX. This innovative move promotes sustainable financing, encouraging investments in companies with responsible ESG practices.

ADX: A Lighthouse for Responsible Investments

The launch of the ESG index aligns with the UAE government’s objectives of the 'Towards the next 50' agenda, which seeks to establish a sustainable economy and position the UAE as a major gateway for global trade and investment. The ESG index, initially including 24 companies listed on the ADX market, serves as a transparent and objective measure of companies' ESG performance. It not only promotes sustainable business practices among listed companies but also attracts greater investments into responsible companies. The ADX has witnessed an increase in the listings of green debt instruments, further bolstering the diversification of the UAE economy and contributing to the nation's sustainable growth.

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