Abu Dhabi and Pakistan cement closer ties as Pakistani companies plan to list on ADSM

ADSM's first MoU with a non-GCC exchange

Abu Dhabi, September 18 2006 - Abu Dhabi Securities Market (ADSM) and the Central Depository Company (CDC) of Pakistan today signed ADSM's first non-GCC Memorandum of Understanding (MoU), in a move that further support's ADSM's drive to encourage increased trading activity from international investors, as well as foreign companies looking to list.  The Pakistan Business Council played the role of 'matchmaker' between the CDC and ADSM.

ADSM currently has more than 2,000 Pakistani investors registered, with investments worth AED 50 million and it is understood that in the region of ten Pakistani companies have received approval for dual-listing in the UAE, in addition to their home-base listing in Pakistan. The CDC is Pakistan's central securities depository for the country's three stock exchanges in Karachi, Lahore and Islamabad.

Rashed Al Baloushi, Acting Director General of ADSM, explained that this move is not only significant to Abu Dhabi, but also to the UAE as a whole, and to Pakistani investors in particular.  He also highlighted the importance of such agreements and the role they play in securing market growth in the UAE.

"This day marks a turning point in the growth of ADSM" said Mr Al Baloushi.  "We have already had successful experiences with Muscat and Doha, but this is the first MoU we have signed with exchanges based outside the GCC. 

"ADSM will now become a gateway for companies wanting visibility in UAE, Oman and Pakistan.  We hope it will not stop there."

He noted that Abu Dhabi is a significant investor in Pakistani companies, citing this as confirmation that this move is timely and will only further fuse the two markets.  There are currently 2,200 investors from Pakistan registered at ADSM, with total investments of AED 50 million[1].

"Abu Dhabi is a significant investor in Pakistani companies so it is important for us to cement close ties between our markets

"We also look forward to working closely with the three Pakistan stock exchanges as we implement our best practices programme and continue to improve the regulation and governance standards in the UAE financial markets."

Hanif Jakhura, Chief Executive of the Central Depository Company, added that "not only are there are a large number of companies in Pakistan who want to list in the UAE, but we are also planning diverse investment opportunities through listed bonds, mutual funds, open- and closed-ended funds.

"There are is a huge number of Pakistani nationals in the UAE and we are glad to finally give them the opportunity, through ADSM, to invest in Pakistani companies.

Dr. S. Qaiser Anis, President of Pakistan Business Council UAE mentioned that "the relationship between UAE and Pakistan has been brotherly and close since inception of UAE. 

"With signing of this agreement, new dimensions of business will be opened up, and in capital market opportunities, in particular. Pakistani companies have now got another channel for listing, while the UAE-based investor will be able to consider a broader investment spread and take advantage of the opportunity that Pakistan brings to the table."

Mr Al Baloushi concluded by encouraging more companies in Pakistan to seek a dual listing with ADSM, highlighting the excellent opportunities for raising capital in the region.  He also talked about he benefits of diversification to UAE investors and the economy.

"Currently ten Pakistani companies are seeking a dual listing on UAE exchanges and we hope this MoU will encourage more such companies to recognise the opportunities available in the UAE and, in particular Abu Dhabi.

"As long as we continue to bring international companies and more diverse investment opportunities to the UAE local markets we are helping investors to spread their risks, contributing to long-term market stability and ultimately furthering economic growth in the UAE."

Since the end of 2001 the number of listed companies on ADSM has grown fourfold; there are now nearly six times as many brokerage firms; market capitalisation is 20 times higher - ADSM is the third largest international exchange in the GCC in terms of market capitalisation; there are 50 times as many shareholders registered and ADSM is a model emiratisation employer with UAE nationals making up about 74% of the team head count.

-Ends-

About ADSM
Established in November 2000, Abu Dhabi Securities Market is the largest Securities exchange in the UAE in terms of market capitalisation.  59 companies were listed on ADSM, as of March 2006, with a combined market capitalisation of over AED 300 billion. 

About CDC
Central Depository Company of Pakistan Limited (CDC) was incorporated in 1993 to manage and operate the Central Depository System (CDS). CDS is an electronic book entry system to record and transfer securities. Electronic book entry means that the securities do not physically change hands and the transfer from one client account to another takes place electronically. An IBM led consortium along with the management of the company implemented CDS in Pakistan.

The aim of CDC is to operate as a central securities depository on behalf of the financial services industry so as to contribute to the country's ability to support an effective capital market system which will attract institutional and retail level investors from Pakistan and abroad.

About Pakistan Business Council
Pakistan Business Council UAE was established in December 2004 with an objective to develop trade, commerce and investment between UAE and Pakistan.  Since then, it is actively working to achieve its objective.  Also, the Council was inaugurated by the President of Pakistan, General Pervez Musharraf last year.

The Chairman is H.E. Ahsan Ullah Khan, the UAE Ambassador of Pakistan, and the Patron- in-Chief is HE Nahyan bin Mubarak Al Nahyan.

Media enquiries:
For the Period September 16-October 1 2006.
Lesley Fair
Euro RSCG Furness for ADSM
atuck@adsm.co.ae
tel: +971 2 612 8732
mobile: +971 50 8537897

Tha'er Soukar
Euro RSCG Furness for ADSM
Mobile: +971 50 774 9952

[1] Figures as at 31st August 2006

© Press Release 2006