ADX Signs MoU with Securities Depository Center Company (Edaa) in Saudi Arabia

Monday, 4 February 2019

Abu Dhabi Securities Exchange, the region’s leading financial
market, recently signed a Memorandum of Understanding (MoU) with the Securities Depository
Center Company (Edaa), which is wholly-owned by the Saudi Stock Exchange (Tadawul) and the
sole entity responsible for providing custody, registration, clearing and settlement services for
securities traded on the Saudi Stock Exchange. The MoU was signed in the Saudi capital Riyadh
with the aim to strengthen bilateral cooperation in the dual listing of securities in Saudi and
UAE financial markets.
The agreement falls within the framework of cooperation between the two countries, and the
Saudi-Emirati Coordination Council, which seeks to achieve a common vision of integration
between the two countries and bolster bilateral cooperation on key issues and common
concerns. The agreement is part of ADX and EDAA continuous efforts to enhance their regional
standing and implement the highest standards of governance and transparency in the listing
H.E. Khalifa Salem Al Mansouri, Acting Chief Executive of ADX, and Mr. Mamdooh AlSedairy,
CEO of EDAA signed the MoU.
The agreement aims to identify and standardise the operational, administrative and technical
procedures between the two countries, and establish effective cooperation on dual listing of
securities in their financial markets. This will be achieved through the exchange of information
and data included in the ownership register or relevant to transactions carried out by brokers,
members, or investors. Additionally, this agreement allows for the transfer of securities, and
updating the securities ownership registers in each country.

Commenting on the signing of the agreement, H.E. Khalifa Salem Al Mansouri reaffirmed ADX’s
keenness to develop its legal and legislative structure in accordance with the best international
standards to ensure a competitive, transparent and fair trading environment. H.E. said: “The
MoU with EDAA will enhance the Exchange’s efficiency in the governance of dual listing
operations, which in turn will increase the Exchange’s attractiveness to foreign investors,
enhance liquidity and boost investor trading.”
H.E. Al Mansouri added: “This agreement reiterates the strong relationship that ADX enjoys
with Tadawul and other organisations in Saudi Arabia. We continuously seek to bolster these
partnerships through cooperation agreements and the standardisation of frameworks in
various aspects of ADX operations, such as corporate governance, listing requirements,
disclosure, and trading rules. The agreement will also prove an attractive platform for Saudi,
UAE and foreign investors alike, thanks to the stable and competitive investment environment
in the region’s financial markets. The number of Saudi investors in ADX reached 147,412 by the
end of 2018, of which 147 were institutional investors, with a total trading value (buy + sell) of
AED 1.6 billion in 2018.
Mr. Mamdooh AlSedairy, CEO of EDAA said: “This partnership stems from our mutual
commitment to enhance our cooperation with ADX to facilitate depositary services between
the Saudi and UAE financial markets through providing all facilities to enable the depository
operations, preservation and maintenance of ownership registers between both parties.”
The agreement between the Abu Dhabi Securities Exchange and EDAA will enable each party to
open a deposit account with the other party to deposit and transfer securities in accordance
with their procedures. In addition, it will enable holding and maintaining securities ownership
registers of the deposited securities within each party and managing them , as well as effective
exchange of information, data and records related to the ownership registers or the
transactions executed or to be executed by brokers, members or Clients or any information and
data that both Parties deem necessary.
ADX had previously signed an MoU with the Saudi Stock Exchange Tadawul to enhance mutual
cooperation and bilateral relations between the two parties through the exchange of

information and expertise. The MoU facilitates knowledge exchange programmes, possibility of
utilizing the expertise that both stock exchanges have, interchange of financial market data and
dual listing opportunities as well as cooperation in market-development initiatives.