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Abu Dhabi Securities Exchange

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Jemma Grist

Written By

Jemma Grist

Jemma is a writer, editor and fact-checker focused on retail trading and investing. Jemma brings a unique perspective to the forex, stock, and cryptocurrency markets and works across several investment websites as a researcher and broker analyst.

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Edited By

James Barra

Edited By

James Barra

James is an investment writer with a background in financial services. As a former management consultant, he has worked on major operational transformation programmes at prominent European banks. James authors, edits and fact-checks content for a series of investing websites.

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Fact Checked By

William Berg

Fact Checked By

William Berg

William contributes to several investment websites, leveraging his experience as a consultant for IPOs in the Nordic market and background providing localization for forex trading software. William has worked as a writer and fact-checker for a long row of financial publications.

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Updated

Jul 10, 2024

The Abu Dhabi Securities Exchange, or ADX, commands a dominant position in Arab finance from its location in Abu Dhabi, the capital city of the United Arab Emirates (UAE). As the UAE’s largest and the Arab region’s second-largest stock market, Abu Dhabi Securities Exchange brokers provide a hub for investment in listed public companies on the main general index, and a platform for trading securities in private joint-stock companies through the parallel second market.

This guide will help you compare and choose ADX brokers, and covers the most important things to know before you start trading on the UAE’s leading stock exchange. We also list the top brokers with access to the Abu Dhabi Securities Exchange in 2024.

How To Trade On The Abu Dhabi Securities Exchange

Day trading is legal in the UAE, and foreign investors including non-residents are welcome to invest in the ADX and other Emirati exchanges, though there are several things you need to know to start investing:

• Investors typically buy and sell securities through ADX brokers.
• All investors are required to obtain an investor number before investing on the ADX.
• Investor numbers are available for Emirates ID card holders through the Sahmi digital platform.
• You can also obtain an investor number from accredited Abu Dhabi Securities Exchange brokers or from customer service offices at ADX branches.
• Individual investors who do not have an Emirates ID card will need a passport, ID card, and the IBAN of a personal bank account to obtain an investor number.
• Corporations must present a valid trade licence contract, company incorporation contract and other documentation for their investor numbers.

How To Compare Abu Dhabi Securities Exchange Brokers

Once you have obtained an investor number, you can begin investing through brokers that support trading on the Abu Dhabi Securities Exchange. There are many factors to consider before choosing between investment platforms:

Fees

Costs will be a significant influence when choosing between ADX brokers. Fees can vary massively between brokers so you’ll want to spend some time comparing these before committing to a live account. Emirates NBD Securities, for example, charges a 0.125% broker commission for all trades placed on the Abu Dhabi Securities Exchange. EFG Hermes, on the other hand. charges 0.275% +AED 10 per order.

It is also important to factor in the cost to obtain your investor number to trade the ADX. This varies between Abu Dhabi Securities Exchange brokers or affiliates, however our experts found this is AED 25 via ADIB Securities as an example.

Rewards

Bonuses and financial incentives may also be an important factor when investing through ADX brokers. Though promotions are typically limited, tiered programs and rewards are sometimes offered by Abu Dhabi Securities Exchange brokers.

Emirates NBD Securities, for instance, operates a THARAA membership program with reward points available to be redeemed again future transactions made with the online broker.

Account Opening

The best Abu Dhabi Securities Exchange brokers will offer a fast and efficient new profile registration process. You should look out for online application forms when opening a new account as some brokers based in the UAE still do not provide this. Automated services, particularly when it comes to identity verification, should rank highly.

Platforms & Investment Analysis

Trading terminals bridge the gap for retail investors to trade on a stock exchange. The top Abu Dhabi Securities Exchange brokers will provide a range of platforms that day traders can use to invest their funds. This may include industry-established platforms such as MetaTrader 4 or 5, or bespoke software developed by the broker.

EFG Hermes, for example, provides traders with access to their ‘Pro’ and ‘One’ state-of-the-art platforms integrating real-time data, a wide array of asset classes and analysis tools at the touch of a button.

Abu Dhabi Background

Oil wealth has propelled Abu Dhabi through a period of rapid development since the UAE gained independence from the UK in 1971, and today this Gulf capital boasts an impressive array of features and amenities including a world-class airport, luxury hotels, and shopping malls filled with international brands’ stores.

Abu Dhabi is the regional centre for government as well as financial institutions including the First Abu Dhabi Bank – the largest Emirati bank – and the Abu Dhabi Securities Exchange. As the UAE’s capital city, financial hub, and the home of cutting-edge sports, cultural and entertainment venues, Abu Dhabi’s profile has been rising internationally both as a holiday destination and a location to build lucrative careers.

Abu Dhabi’s path to development has been fuelled by fossil fuel wealth generated from the UAE’s vast reserves through the activities of the Abu Dhabi National Energy Company, TAQA. However, a glance at local job boards, business journals and financial news sources reveal the presence of booming construction, service, communications and financial sectors.

Investing In The ADX

The Abu Dhabi Securities Exchange is a gateway for investors to access this dynamic, rapidly growing market via online brokers. Over two decades of sustained growth since its foundation, the ADX’s performance has reflected Abu Dhabi and the UAE’s move from an oil-based to a more diverse economy.

The Abu Dhabi Securities Exchange has steadily gained recognition from international financial institutions as it met regulatory standards, winning it emerging market status on leading indices including the S&P, Dow Jones and FTSE. It has also made moves to follow international norms on sustainability, publishing its first sustainability report and issuing Environmental, Social and Governance guidance to companies in 2020.

History & Constituents

Founded in 2000, the Abu Dhabi Securities Exchange is the leading exchange in the UAE with a market capitalization of more than $530 billion in 2022. This makes the ADX the second-largest regional stock exchange after Saudi Arabia’s Tadawul, and it is considerably larger than local competitors the Dubai Financial Market and Nasdaq Dubai.

The Abu Dhabi Securities Exchange lists 73 organizations in its issuers directory, representing a broad swathe of the Emirati banking, energy, construction, insurance and service sectors. This list mainly comprises local public joint-stock companies which can be traded on the ADX’s main market, but it also includes twelve private equity companies established in the UAE that trade on the parallel second market.

Major players on the Abu Dhabi Securities Exchange include:

• International Holding Company – conglomerate owned by UAE monarchy
• Aldar Properties – the ADX’s largest real estate developer
• TAQA – Abu Dhabi’s national energy holding company
• First Abu Dhabi Bank – the UAE’s largest bank
• Etisalat – multinational telecom provider

These corporations alone account for a large proportion of the Abu Dhabi Securities Exchange’s market cap, and it is well worth keeping up to date with their financial statements to give you an idea of the market direction. The top Abu Dhabi Securities Exchange brokers will provide the latest financial details and significant market shifts associated with these companies.

The International Holding Company, which is owned through the Royal Group by members of the UAE’s monarchy, is of special interest as it is both the largest company listed on the ADX and the owner of subsidiary companies, such as tech firm Multiply, which are also listed.

Key Dates

Since its inauguration in 2000, the ADX has hit a number of significant milestones:

• 2007: average daily trading volume rises by 400 percent amid an influx of foreign investment
• 2008: the Abu Dhabi Securities Exchange rebrands from ADSM to ADX and inaugurates its new logo
• 2009: FTSE promotes ADX to emerging market status
• 2011: ADX gains emerging market status with S&P and Russell Investments
• 2014: S&P Dow Jones and MSCI promote ADX to emerging market status
• 2020: ADX issues first sustainability report and issues listed organizations with ESG guidance
• 2021: ADX launches derivatives market
• 2022: ADX and FTSE Russell announce index partnership

Strategy Tips

A winning strategy requires thorough research, and the best first step before making any trades on the Abu Dhabi Securities Exchange is to familiarize yourself with the index’s historical performance as well as the companies listed on it.

You can get a general idea about the state of the ADX by researching the FTSE ADX Index Series. The index series, developed in partnership with FTSE Russell, provides daily index calculations on all listed companies on the ADX General Index. It also provides ten sector-specific indices based on the Industry Classification Benchmark, as well as the FTSE ADX 15, an index based on the top 15 companies listed on the ADX. It is a good idea for investors to supplement their research of these indices by studying financial statements and annual and quarterly reports from any specific companies which catch their eye. The best Abu Dhabi Securities Exchange brokers will provide this information in a coherent and simplified manner, ideal for beginners to digest the relevant information.

One thing to bear in mind while trading with ADX brokers is that with just 73 listed companies, this is a relatively small index that is dominated by a handful of big players. As a result, the index will be disproportionately affected by the performance of the largest companies. For example, the International Holding Company and First Abu Dhabi Bank, the two largest companies on the index, account for more than a quarter of the index’s value based on market capitalization in 2022. Studying the specific indices by sector will give you a clearer picture of performance indicators if you want to trade in smaller companies.

You should also note that, as the primary stock exchange for a Gulf state which has historically depended on oil wealth, the ADX’s market dynamics have largely been shaped by developments related to fossil fuels.

This is not to say that the ADX’s price has simply followed oil prices. In fact, the impressive performance of the ADX since its foundation in 2000 has depended more on the influx of large amounts of Foreign Direct Investment, which has flowed steadily into the UAE since 2010 as the result of an intense programme of reforms aimed at diversifying the economy away from hydrocarbons.

Nevertheless, large oil and gas reserves continue to underpin the UAE’s economy, and this might explain the ADX’s buoyant performance since Russia launched its invasion of Ukraine in February 2022. While major international stock exchanges have faltered since the invasion, the ADX reached an all-time high above 10,000 in March 2022, after plunging to an eight-year low of around 3,600 in March 2020. Higher oil prices are likely to bring more revenues to the UAE, and this may well be reflected in significant upticks in investment in various sectors such as construction.

So, keeping a close eye on developments that may affect hydrocarbon prices and FDI in the UAE will form an essential part of the strategy both for long-term investors and for traders looking to profit from shorter-term price movements.

Trading Hours

The Abu Dhabi Securities Exchange is open Monday through Friday, with the day divided into four stages during which buy and sell orders can be entered:

• Pre-trading session – 09:30–09:59 GST
• Continuous trading session – 10:00–14:44 GST
• Pre-closing session – 14:45–14:54 GST
• Trade at last session – 14:55–15:00 GST

The ADX’s opening hours are in Gulf Standard Time (UCT + 4), and it is worth keeping in mind that the exchange is only open on weekdays. Note, not all accredited Abu Dhabi Securities Exchange broker’s will provide out-of-hours trading so check this before you sign up.

Market Holidays

As an Islamic country, many of the United Arab Emirates’ national holidays are based on the Islamic calendar and will change from year to year in relation to the commonly used Gregorian calendar. Make a note of the dates of Eid al-Fitr and Eid al-Adha if you plan to trade on the Abu Dhabi Securities Exchange this year, as markets will be closed throughout these holidays. These dates should be reflected in your Abu Dhabi Securities Exchange brokers’ trading calendar.

Other holidays which affect the Abu Dhabi Securities Exchange include:

• January 1 (New Year’s Day)
• December 1 (Commemoration Day)
• December 2–3 (National Day)

Final Word On ADX Brokers

The Abu Dhabi Securities Exchange is home to some of the largest companies in the Middle East. And while the country and economy have historically been dependent on oil, foreign investment, among other factors, now play a key role. Use our guide above to start trading on the ADX and use our list of the best Abu Dhabi Securities Exchange brokers.

FAQs

ARE Abu Dhabi Securities Exchange Brokers Regulated?

The ADX is regulated by the Securities and Commodities Authority, a federal authority established by the UAE government in 2000 to oversee markets. The SCA reports directly to the UAE’s economy minister. The best ADX brokers are also regulated locally.

Where Is The Abu Dhabi Securities Exchange Located?

The main headquarters of the ADX is found in the Landmark Tower on Al Hisn Street in the Abu Dhabi city centre. Branches of the ADX can also be found in Al Ain and Sharjah. Note, ADX brokers may be based locally or offshore.

Who Owns The Abu Dhabi Securities Exchange?

The ADX is wholly owned by the Abu Dhabi Developmental Holding Company PJSC, a state-owned development holding company which Abu Dhabi’s government established in 2018.

Who Manages The Abu Dhabi Securities Exchange?

The ADX’s Managing Director and CEO is Saeed Hamad al-Dhaheri, who joined from TAQA where he was a Deputy CEO. The CFO, David Nevin, joined from the Intercontinental Exchange, where he served most recently as Group Finance Director of EMEA. The ADX’s board of directors is headed by chairman H.E. Hisham Khalid Malak, who also serves as undersecretary in Abu Dhabi’s Department of Finance.

What Is The Best Way To Contact The Abu Dhabi Securities Exchange?

The easiest way to reach the ADX is through its website, which includes a section listing its contact number and a live chat option. It also allows users to write messages directly to the ADX’s customer service officers through the website, though it does not list an email address. You can also follow the Abu Dhabi Securities Exchange through its Twitter account or contact Abu Dhabi Securities Exchange brokers for any other questions.