Abu Dhabi – Mubasher: The Abu Dhabi Securities Exchange (ADX) on Sunday announced that it will cut its trading commission fees as of 1 July 2019 in a bid to make the ADX among the least expensive stock markets in the MENA region in terms of trading commissions.
The move aims at easing costs on investors, boosting confidence, increasing liquidity, and attracting further investors into the ADX, according to a press release.
The new initiative will act as a key step toward achieving the objectives of ‘Ghadan 2021 plan’ to eliminate barriers and cut the cost of doing business in Abu Dhabi.
The ADX constantly seeks to launch new initiatives in an effort to diversify available investment products for its stakeholders to facilitate the expansion and diversification of the emirate’s economy and enable it to compete as a primary centre for attracting foreign direct investment.
Khaleefa Al Mansouri, ADX acting chief executive, said: “Through this initiative and the introduction of other investment opportunities, the ADX is providing additional incentives for both local and international investors to invest on the exchange providing liquidity into the market and helping to finance listed companies’ projects which will support the of expansion their business.”
The ADX is slashing its trading commission with a range from 50% to 90%, upon which the cost for annual transactions of less than AED 250 million will hit 5 basis points of the transaction value, while the cost for transactions in excess of AED 1 billion over the period of 1 year will be around one basis point.
The stock market has also cut its trading commission for transactions exceeding AED 1 billion by 90% from the previously implemented transaction fees.
The total number of institutional investors in the ADX reached 8,395 at the end of May 2019, including 6,318 foreign investors.
Institutional investors traded AED 1.5 billion in the ADX during the first five months of 2019, up 73 from AED 890 million in the same period of 2018.
In June 2018, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces Mohammed bin Zayed Al Nahyan announced a three-year AED 50 billion stimulus package for Abu Dhabi.
