Abu Dhabi Securities Exchange (ADX) and Bahrain Bourse (BHB) announced the launch of the region’s first digital exchange hub – Tabadul. The exchanges commemorated this landmark achievement towards the launch of Tabadul with an official bell ringing ceremony live streamed from BHB and the ADX headquarters. HE Hisham Malak, Chairman of Abu Dhabi Securities Exchange (ADX), rang the market opening bell at Abu Dhabi Securities Exchange and the Minister of Finance and National Economy, HE Shaikh Salman bin Khalifa Al-Khalifa, rang the market opening bell at Bahrain Bourse with the attendance of the Minister of Industry and Commerce & Minister in Charge of Bahrain Bourse, HE Zayed bin Rashid Al Zayani, and the Governor of the Central Bank of Bahrain, HE Rasheed Mohammed Al Maraj, along with the Board of Directors and Executive Management of both exchanges.
Tabadul was the result of the signed strategic partnership agreement in November 2021 between Abu Dhabi Securities Exchange (ADX) and Bahrain Bourse (BHB) to implement a cross-border plan in trading and post-trading environments. Based on the mutual market access model, Tabadul will allow investments across Bahrain Bourse and Abu Dhabi and enable investors to trade directly on both exchanges through licensed brokers in both markets.
During a welcoming speech, the Minister of Finance and National Economy of Bahrain, HE Shaikh Salman bin Khalifa Al-Khalifa said, “Capital markets play a vital role in accelerating the development of the economy, and today we witness a remarkable launch as a result of the strategic cooperation between the Kingdom of Bahrain and the UAE, which witnesses advanced growth in line with His Majesty King Hamad bin Isa Al Khalifa and the HH Sheikh Mohamed bin Zayed Al Nahyan, the President of the UAE’s ongoing support. We are keen to enhance the investment environment in both countries by exploring new ways of cooperation within the capital market ecosystem to further support the local economy.”
Speaking on the occasion, HE Hisham Malak, Chairman of Abu Dhabi Securities Exchange noted, “Our pioneering leaders long-standing vision has been to create a network of exchanges in the region to ensure market liquidity and lasting financial prosperity. This vision has become a reality today with the launch of Tabadul under the leadership of Abu Dhabi Securities Exchange in collaboration with Bahrain Bourse. The partnership highlights the central role that capital market development plays in regional growth.
“The launch of Tabadul reflects on the Emirate’s commitment to have closer economic ties with nations in the region and enhance market liquidity. It is a step forward in enhancing cooperation between UAE and Bahrain and will further bring economic prosperity to both nations. This new milestone will contribute to the economic growth of the Emirate of Abu Dhabi through accelerating economic diversification and enhancing its financial services sector, attracting a wider range of investors and issuers from around the world creating a dynamic capital market environment.”
Saeed Hamad Al Dhaheri, Managing Director and Chief Executive Officer of ADX, commented: “Broadening regional partnerships is a core element of ADX One strategy aiming to increase liquidity, enhance market efficiency, and drive the sustainable growth of the exchange. The launch of Tabadul is a testament to our commitment to the strategy and to being the market of choice for issuers and investors. Tabadul will strengthen ties between regional exchanges, and expand investment opportunities for investors. We look forward to working closely with our partners Bahrain Bourse to further enhance our offering and onboard more capital markets to the hub, enabling the growth of capital markets in the region and supporting the diversification of GCC economies."
Bahrain Bourse’s Chief Executive Officer and Vice Chairman and Managing Director of Bahrain Clear, Shaikh Khalifa Bin Ebrahim Al Khalifa commented: “The launch of Tabadul is a culmination of BHB and ADX efforts during the past eight months, which reflects upon BHB’s commitment to enhance coordination with GCC Bourses in line with the Financial Services Sector Development Strategy of the Economic Recovery Plan that prioritises capital market development.”
“The launch of Tabadul is a key milestone achievement within the regional capital markets. Tabadul will be mutually beneficial to both capital markets – ADX & BHB, supporting the continued sustained growth in both markets by expanding the respective investor bases, and serving to meet the broadened horizons of investors. We look forward to continuing working with our partners ADX to further enhance and broaden the market offering of Tabadul as we continue to enhance our mutual market connectivity.”
It is worth noting that ADX has 20,000 registered Bahraini investors with a total trading value (Buy + Sell), of AED 1.3 billion and the trading volume (Buy + Sell) of 320 million shares in 2021. The launch of Tabadul promises to further increase these numbers.
Tabadul will be accessible to all investors whom 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 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.