YOUSSEF AL-BUSTANGI (ABU DHABI)

Mohammed Ali Al Shorafa, Chairman of the Securities and Commodities Authority (SCA), stated that during the period from 2021 to 2023, the Authority oversaw 45 new listings in the UAE financial markets, adding over Dh1 trillion to the local markets’ value.

Speaking to Aletihad, Al Shorafa noted that the new listed companies consisted of 35 companies listed on the Abu Dhabi Securities Exchange and 10 companies on the Dubai Financial Market.

In the report issued by the Authority on Wednesday, a copy of which was obtained by Aletihad, the SCA Chairman stated that the new initiatives, legislations, amendments, and proposals recommended by the Authority over the past three years contributed to boosting confidence and transparency in local markets.

These measures supported the investment momentum and vitality of activity, leading to the rise of the general indices of both the Abu Dhabi Securities Exchange and Dubai Financial Market to unprecedented levels.

Al Shorafa mentioned that the Board of the Authority presented approximately 40 initiatives and projects during the past three years, contributed to the issuance of 13 new legislations, modified 39 existing legislations, and endorsed 18 legislations issued by local markets, including the Dubai Gold and Commodities Exchange, Dubai Clearing Company, and Dubai Depository Company.

These efforts, along with numerous proposals, strengthened the supervisory role and raised transparency levels in local markets.

According to the report issued by the Authority, local financial markets achieved significant accomplishments over the past three years, despite the global financial markets’ turmoil caused by the COVID-19 pandemic.

The report highlights the developments in local financial markets since the beginning of 2021 until the end of November 2023:

Abu Dhabi Market

The general index of the Abu Dhabi Securities Exchange reached its highest level since 2014 in 2022, closing at 10,671.32 points, representing a 111.51% increase compared to its closing level at the end of 2020, which was 5045.31 points.

Regarding the market capitalisation of the Abu Dhabi Securities Exchange, it rose to approximately Dh2.88 trillion, a 287.78% increase compared to the market capitalisation at the end of 2020, which was Dh742.58 billion. This surge was supported by the return of listing momentum and enhanced investor confidence in the market.

Abu Dhabi Securities Exchange Performance

Under the current Board of Directors’ management, the Abu Dhabi Securities Exchange has witnessed the addition of 35 new listings, contributing approximately Dh800 billion to the market value.

Dubai Financial Market Performance

The general index of the Dubai Financial Market increased by 68.62%, closing at 4201.84 points on October 3, 2023, the highest level since 2014. This is compared to the closing level of 2491.97 points at the end of 2020. The rise is supported by market listings, local economic recovery, and flourishing real estate and banking sectors.

Regulatory Actions

Over the past three years, the Securities and Commodities Authority has taken various measures regarding financial violations, including 363 warnings, 106 alerts, 206 fines, referral of 25 violators to the public prosecution, cancellation of three licences, and suspension of seven violators from trading.