BREAKING NEWS

Tel Aviv Stock Exchange and Abu Dhabi securities exchange sign MOU

This is the first time an Arab exchange has entered into a commercial relationship with the State of Israel.

DECEMBER 16, 2020 13:25

Updated: DECEMBER 16, 2020 13:26

Abu Dhabi Securities exchange (ADX) and the Tel Aviv Stock Exchange (TASE) signed a memorandum of understanding on Wednesday, the ADX and TASE announced in a joint statement.

This is the first time an Arab exchange has entered into a commercial relationship with the State of Israel, according to the statement.

The MOU aims to improve communication between the exchanges and contribute to the growth of the capital markets in Israel and the United Arab Emirates.

Another reason for the signing of the MOU is to improve the countries joint pursuit of opportunities for collaboration. Potential collaborations include mutual trading by each exchange's respective members, facilitating investor access to each other's markets, creating new market infrastructure technologies and sharing data that would facilitate the development of new products.

Chairman of the ADX H.E. Mohamed Ali Al Shorafa Al Hammadi, and TASE Chairman Amnon Neubach signed the MOU at a virtual ceremony.

Al Hammadi called the MOU "evidence of our commitment to drive value in the region through trade and commerce."

"By offering companies and investors more ways of achieving their business objectives, we are supporting the vision of the peace agreement that should benefit all people across the region,” AL Hammadi went on to say.

CEO of TASE, Ittai Ben Zeev called the MOU remarkable and said that its signing is "an important event and a testament to the opportunity that Israel’s capital markets represent for international investors seeking Israeli technology and high growth companies."

The ADX includes trading of public joint stock companies, government bands, exchange traded funds and more. It is the Arab region's second largest market.

TASE is Israel's only exchange and provides a market for shares, bonds, convertible securities and more.