ADX and Bahrain bourse launch digital exchange hub Tabadul

The Abu Dhabi Securities Exchange (ADX) and Bahrain Bourse have launched the region’s first-of-its-kind digital exchange hub – Tabadul – to provide direct access to the markets. The platform was launched at the same time in the ADX and Bahrain Bourse.

The official bell ringing ceremony live streamed from BHB and the ADX headquarters. While ADX Chairman Hisham Malak rang the market opening bell at ADX, Shaikh Salman bin Khalifa Al Khalifa, Bahrain’s Minister of Finance and National Economy, rang the market opening bell at Bahrain Bourse with the attendance of Zayed bin Rashid Al Zayani, the Minister of Industry and Commerce & Minister in Charge of Bahrain Bourse, and Rasheed Mohammed Al Maraj, the Governor of the Central Bank of Bahrain, along with the Board of Directors and Executive Management of both exchanges.

ADX and Bahrain Bourse signed a strategic partnership agreement in November 2021 to implement a cross-border plan in trading and post-trading environments. It is also aimed at enhancing cooperation between them and make a qualitative leap aimed at enhancing liquidity in the two markets.

Beneficial for Investors

Based on the mutual market access model, Tabadul will allow investments across the two markets to enable investors to trade directly on both exchanges through licensed brokers in both markets.

ADX has 20,000 registered Bahraini investors with a total trading value $350 billion (buy and sell) and the trading volume of 320 million shares in 2021. The launch of Tabadul will further increase these numbers.

Tabadul will be accessible to all investors who have registered with eligible local brokers and filled out the requisite KYC documents required by the local exchange in their country of residence.

Securities on Tabadul are traded in the respective exchange’s local currency, and in the specified currency of the traded asset for some cases, with no minimum amount required for orders. Investors can trade on-boarded exchanges during the designated days and trading hours.

All investors must follow the respective capital markets official holidays and trading hours to trade securities accordingly.

In his comments, Sheikh Salman bin Khalifa Al Khalifa, said: “Financial institutions play a key role in advancing the wheel of economic development, and today we are witnessing a special event that is the fruit of the strategic partnership between Bahrain and the UAE.”

Hisham Malak said: “In light of the data and achievements made by the GCC countries in all fields, especially in economy, in which the importance of integrating financial markets has emerged, which plays an important role in promoting the economic growth process in countries.”

Linking Capital Markets

He further said Tabadul aims to link the capital markets in the region to ensure the liquidity of financial markets and create sustainable investment opportunities, to shed light on the pivotal role that these markets play in growth on the regional level.

ADX CEO and MD Saeed Hamad Al Dhaheri, said: “The launch is proof of our commitment to this strategy and that we are the preferred market for investors and issuers. It will enhance regional relationships and exchanges, and increase investment opportunities for investors and issuers. We look forward to working closely with our partners at Bahrain Bourse to enhance our offering and bring more capital markets to the platform, enabling the growth of capital markets in the region and supporting the economic diversification of the GCC.”

Bahrain bourse CEO and MD Sheikh Khalifa bin Ibrahim Al Khalifa, said the platform is a culmination of the efforts of the two exchanges in the last eight months, which reflects Bahrain Bourse’s commitment to promoting cooperation with the stock exchanges of the Gulf Cooperation Council countries, in line with the strategy to develop the financial services sector in the economic recovery plan, which among its priorities is the development of the capital market.