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Abu Dhabi: The Abu Dhabi Securities Exchange (ADX) plans to list international companies to enhance its profile, a top executive said on Sunday.
The planned move comes in reaction to the relatively limited options available to investors in a market where the real estate and financial sectors hold sway.
"Other than the real estate and finance, there are limited options for investors at ADX, where we cannot find an electronics sector for instance, and hence we are seeking to broaden these choices by attracting international players," Tom Healy, ADX's CEO told Gulf News.
The market plans to achieve this target through a gradual approach, proceeding by Exchange Traded Funds (ETFs), which represent an excellent vehicle to market for ADX overseas, according to Healy.
"If we accommodate ETFs and they perform well, then this will attract other international players to our market," he said.
ADX is still awaiting the necessary regulations. The Emirates Securities and Commodities Authority will issue new regulations governing new instruments this year.
The authority is already working on re-drafting its own regulations, as well as introducing new regulations covering new investment instruments including exchange traded funds and options.
"ADX is about seven years old, while ESCA is even younger, and it will take time to change, including the streamlining between ADX and the Dubai Financial Market," Healy said.
"Regulating the markets is best left to the regulator, as self-regulation is a fading trend in global markets," he added.
Other instruments on the horizon include a derivatives market, though Healy agrees that this will require a more mature market.
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