Securities and Commodities Authority and ADGM [RA] sign a MoU to enable registered entities to list shares on UAE markets

ADGM RA 05/10/2021
  • Agreement aims to counteract and address money laundering, terrorist financing and financing of illegal organisations
  • Provides financial markets with greater impetus and facilitates ease o of doing business by encouraging corporates to list shares

The Securities and Commodities Authority (SCA) and the Registration Authority (RA) of Abu Dhabi Global Market (ADGM) have signed a Memorandum of Understanding (MoU) to enable ADGM registered entities to offer and list shares on UAE capital markets. The agreement, which aims to reinforce regulatory and supervisory cooperation between the two parties, was signed by Her Excellency Dr. Maryam Buti Al Suwaidi, Acting CEO of the SCA, and Dhaher bin Dhaher Al Mheiri, CEO of the ADGM RA.

Commenting on the agreement, H.E. Dr. Maryam Al Suwaidi, Deputy CEO of the SCA, said: “The agreement is in line with the SCA’s Resolution No. (11/R.M) of 2016 regarding the offering and issuance of shares on public markets, wherein ADGM registered entities will now be able to offer and list their shares in the UAE’s markets under the applicable listing regulations. It also reinforces the SCA’s existing agreement with the ADGM Registration Authority in the area of supervision and regulatory cooperation.”

"We truly believe that this agreement will contribute to an increase in IPOs and direct listings on the country's stock exchanges, effectively sustaining market momentum and offering greater opportunities to investors and attract foreign investment inflows." H.E. added.

Dhaher Bin Dhaher Al Mheiri, CEO of the ADGM RA, said: “We are pleased to further cement our partnership with the Securities and Commodities Authority through the signing of this MoU. This step is especially important as we witness the continuous growth and expansion of the financial market in Abu Dhabi and the UAE. The reinforcement of supervision and regulatory cooperation between us will certainly result in greater investor trust, accessibility and ease of doing business. As an IFC, we will continue to work with our strategic partners, locally and internationally, to further Abu Dhabi and the UAE’s economic development plans and enable investors and the business community to access investment opportunities in ADGM and beyond.”

Under the agreement, the ADGM RA and the SCA will enhance regulatory and supervisory cooperation in regards to the listing of ADGM-registered entities on UAE markets.

The agreement also aims to ensure the safety of transactions and protection of investors through an exchange of information between both parties and assistance in necessary inspections and investigations.

Both parties will also cooperate on monitoring the trading and ownership of the entities’ listed shares, as well as the detection of illegal and fraudulent activities to safeguard against money laundering, terrorist financing and financing of illegal organisations.