Deal aimed at fostering cooperation between two bourses
ABU DHABI/TEL AVIV/December 16-2020: Abu Dhabi Securities Exchange (ADX) and the Tel Aviv Stock Exchange (TASE) have on Wednesday signed a memorandum of understanding (MOU) with a view to facilitating the development of channels of communication that could foster co-operation between the two exchanges.
This is the first time an Arab exchange has entered into a commercial relationship with the state of Israel. The MOU will, also contribute to the growth of the capital markets in the UAE and Israel, according to a statement issued by ADX.
The MoU was formally signed by Mohamed Ali Al Shorafa Al Hammadi, Chairman of ADX, and Amnon Neubach, Chairman of TASE, at a virtual signing ceremony.
The MOU comes close on the heels of the signing of the peace agreement between the two countries some time back.
Roadmap towards bilateral relations
This MoU forms an important part of the UAE’s efforts to expand diplomatic and commercial co-operation with Israel, by laying out a road-map towards developing bilateral relations through the stimulation of economic growth and promotion of technological innovation.
One of the key purposes of the MoU between ADX and TASE is to explore potential opportunities for collaboration, including: the cross-listing of securities; mutual trading by each exchange’s respective members; facilitating investor access to each other’s markets; creating new FinTech and other market infrastructure technologies; and sharing data and other information to enable the development of new products.
These activities aim to facilitate easy access between the two capital markets. It will also offer an attractive marketplace to all key stakeholders including listed companies, investors, and brokers as well as providers and consumers of information. Mohamed Ali Al Shorafa Al Hammadi (seen in the picture – top), Chairman of ADX, said as the relationship between the UAE and Israel enters a new era, the path is open for businesses from both countries to collaborate with each other and unlock commercial opportunities.
“The MoU signed between ADX and TASE is an early example of such collaboration and evidence of our commitment to drive value in the region through trade and commerce. By offering companies and investors more ways of achieving their business objectives, we are supporting the vision of the peace agreement that should benefit all people across the region,” Al Hammadi said.
Saeed Hamad Al Dhaheri, Chief Executive of ADX, said that the MoU between ADX and TASE clearly illustrates how exchanges can partner for the mutual benefit by sharing ideas, information, and initiatives that add value to th parties.
Amnon Neubach (Seen in the picture – above), Chairman of the Tel Aviv Stock Exchange, said that TASE is looking forward to be working closely together with the Abu Dhabi Securities Exchange, and he is confident that this MoU will strengthen the capital markets of Israel and the UAE and will provide important opportunities for listed companies in both countries.
Ittai Ben Zeev, CEO of the Tel Aviv Stock Exchange, stated that the development of the Tel Aviv Stock Exchange’s international exposure is one of our key strategies, adding this remarkable MoU is an important event and a testament to the opportunity that Israel’s capital markets represent for international investors seeking Israeli technology and high growth companies.