ADX to Work with Budapest Bourse On Key Issues

The Abu Dhabi Securities Exchange (ADX), one of the fastest-growing and leading exchanges in the Middle East, and the Budapest Stock Exchange (BSE), the second-largest exchange in Central and Eastern Europe, signed a Memorandum of Understanding (MOU) to collaborate on a number of key initiatives.

The signing took place on Wednesday on the side lines of the state visit of the UAE President H H Sheikh Mohamed bin Zayed Al Nahyan to Hungary. The signing ceremony took place at the offices of the BSE in the presence of the UAE Ambassador to Hungary Saud Hamad Al Shamsi and other dignitaries.

The MOU sets out to deepen relations between the two countries’ capital markets and share best practices. The agreement also marks another important step in the BSE’s efforts to build international relations, including in the Middle East. The development dovetails well with ADX’s ongoing efforts and initiatives to strengthen relationships with leading global financial institutions.

Both exchanges will seek, among other things, to promote the visibility of the Hungarian and UAE capital markets by organising joint events such as investor roadshows, seminars and educational programs.

They are also exploring the possibility of cooperation in the development and promotion of ETF products in order to provide investors in both markets with more diversified and modern instruments.

The BSE and ADX will also analyse the possibilities of dual listings and cross-border trading. The two exchanges are also planning closer professional cooperation in the field of ESG. A key part of the agreement is the sharing and exchange of best practices, including on market developments, regulatory practices, product development and IT capacity building.

The two bourses will explore and evaluate appropriate pathways for the BSE to become part of the Tabadul Hub, a pioneering platform launched by ADX in 2022. As the region’s first digital exchange based on a mutual market access model, Tabadul facilitates seamless cross-border trading by connecting exchanges through a digital network and enabling brokerage firms to provide remote access to international markets.

New Products to Be Developed

ADX Group CEO Abdulla Salem Alnuaimi said that this collaboration marks a key milestone in ADX’s global integration journey, establishing a strong foundation for enhanced cooperation and innovation.

He also said that together, both sides aim to develop new financial products, including ETFs, indices, and other investment vehicles, to serve both local and international investors. The partnership also explores opportunities for cross-listings between the two markets, while the Tabadul Hub will further enhance digital connectivity and remote market access.

“This strategic alliance reinforces Abu Dhabi’s position as a dynamic and globally connected financial centre committed to sustainable growth and shared prosperity,” he added.

BSE CEO Tibor Toth emphasised that the partnership not only strengthens the relationship between the two exchanges but also opens new opportunities for Hungarian and Emirati investors.

“We are confident that these new initiatives will make our markets even more attractive to both domestic and international investors. Tabadul is a unique platform and initiative providing exciting opportunities for BSE,” he added. This collaboration is set to provide a robust platform for financial growth and connectivity between the UAE and Hungary, reflecting ADX’s and BSE’s commitment to global economic progress