Sunday 22 April 2018

ADX, Citi sign custody agreement

Abu Dhabi, November 11, 2008

Abu Dhabi Securities Exchange (ADX) and Citi have signed a custody agreement whereby Citi will provide custody of ADX-listed shares to institutional investor clients.

This will encourage and facilitate further international investment in Abu Dhabi which will lead to a broadening of the Exchange’s investor base, said a top ADX official.

Tom Healy, chief executive of ADX, welcomed the agreement and explained the benefits to the exchange of having more long-term international institutional investors.

"Abu Dhabi is a dynamic and growing economy and ADX is responding to investor demands to diversify the services on offer. This custody agreement is a further step in providing high quality custodial services and easier access to Abu Dhabi’s capital market," he noted.

"Currently only 9 per cent of investors are from outside the UAE, and only 32 per cent of trading is done by institutional investors. Increasing foreign investment in Abu Dhabi’s capital market is an integral part of our strategy," Healy remarked.

"Foreign, particularly institutional, investment is vital for its long term sustainability hence we welcome Citi as one of the leading custodians globally to assist with the continued globalisation of the investor base of the ADX market," he added.

Mohammed Al-Shroogi, managing director for the Middle East and chief executive officer for Citi in the UAE, emphasised the significance of the agreement for the Bank and specifically its global transaction banking business in the Gulf region.

'Providing direct custody and clearing (DCC) services to the investors at Abu Dhabi Securities Exchange is an integral part of Citi's ambitious regional expansion plan,' he said.

'We have recently embarked on a strategy to deliver locally our securities and funds services capabilities within the region, while we continue to offer clients in the Middle East our full suite of global financial services and customise financial solutions that meet their growing needs,' he added.

Citi has been present in the Arab World for nearly fifty years and continues to view the region as critical to its global franchise. It is currently present in ten Arab countries including Egypt, UAE, Lebanon, Jordan, Tunisia, Morocco, Algeria, Bahrain, Qatar and Kuwait.-TradeArabia News Service

Tags: agreement | Citi | Abu Dhabi Securities Exchange |

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