Abu Dhabi:  In line with its strategy to enhance the UAE’s investment structure and support its sustainable economic growth, Abu Dhabi Securities Exchange (ADX), the region’s leading financial market, has awarded SICO with the first non-UAE license to serve as Market Maker, making it the fifth registered Market Maker on the Exchange. The announcement came at a bell-ringing ceremony on ADX’s trading floor, which was attended by members of ADX and SICO executive management. 

SICO BSC (c) is a leading regional asset manager, broker, market maker and investment bank based in Bahrain, and has been the leading market maker on the Bahrain Bourse since 1995, making it a pioneer and key player in the GCC financial markets. As market maker, liquidity provider, and major participant in UAE markets through its Abu-Dhabi based subsidiary ‘SICO Financial Brokerage LLC’, SICO will help narrow the spread between bids and offers as well as encourage further trading.

This step is a reflection of ADX’s success in increasing the attractiveness and competitiveness of the Exchange through diversifying its products. Speaking at the bell-ringing ceremony, Chief Executive of ADX, Rashed Al Blooshi said: “Awarding a new Market Maker license represents yet another milestone in ADX history, pointing to our willingness to expand our investor base, and continually improve market liquidity. Increasing the number of Market Makers on the Exchange is a key part of our long-term strategy of promoting Abu Dhabi to a wider range of international and domestic investors who can benefit from its competitive yet friendly business environment.”

The step also comes in-line with ADX’s commitment to continually develop and launch strategic initiatives that contribute to the Abu Dhabi Economic Vision 2030.  The Vision plays a vital role in the development of ADX’s core strategy by placing the financial market in the wider context of economic and social development designed to transform the Emirate into one of the leading financial service centres in the region.

ADX has registered SICO in line with guidelines issued by the country’s main financial regulatory body, the Securities and Commodities Authority (SCA), which stipulates that the ownership of a liquidity provider cannot exceed 5% of the listed company’s shares, and that issuers have the right to assign multiple liquidity providers.

Commenting on the accreditation, SICO CEO Ms. Najla Al Shirawi, noted: “We thank ADX for its confidence in us and are delighted to be the first non-UAE-based company to receive this license, which reinforces SICO’s position as a leading financial solutions provider in the region. We look forward to assisting listed companies in improving valuations and attracting fresh capital, which will further enhance the confidence of regional and international investors.”

She added: “Over the past two decades, SICO has stayed ahead of the curve by offering sophisticated financial solutions and continually updating its offerings. As the first approved market maker on the Bahrain Bourse, SICO has made a significant impression on market liquidity and boosted the bourse’s average daily traded value. The Bahrain Liquidity Fund, which was co-seeded by SICO in June 2016, has contributed to the increase of the bourse’s turnover since its inception by 150%.”

SICO launched and co-seeded the BHD 41 million (AED 403.3 million) Bahrain Liquidity Fund with the aim of enhancing and deepening the Kingdom’s stock market. Since its launch, the Fund has made a sizable impact on daily traded value and turnover on the Bahrain Bourse, more than doubling the its average daily traded value in just one year from BHD 260,000 (AED 2.56 million) per day in 2017 to BHD 572,000 (AED 5.6 million).

SICO is currently the Market Maker on Bahrain Bourse for Aluminium Bahrain, Eskan Bank REIT, GFH Financial Group and Bank ABC, which are among the most highly traded entities listed on the exchange.

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About Abu Dhabi Securities Exchange (ADX)

Abu Dhabi Securities Exchange (ADX) was established on November 15 of the year 2000 by Local Law No. (3) Of 2000, the provisions of which vest the market with a legal entity of autonomous status, independent finance and management.  The Law also provides ADX with the necessary supervisory and executive powers to exercise its functions.

ADX is a market for trading securities; including shares issued by public joint stock companies, bonds issued by governments or corporations, exchange traded funds, and any other financial instruments approved by the UAE Securities and Commodities Authority (SCA).

In 2014, ADX was upgraded to ‘Emerging Market’ status by both MSCI and S&P Dow Jones. ADX was already classified as an Emerging Market by FTSE in 2009 and in 2011 by S&P and Russell Investments. 

For more information, please contact:

Abdulrahman Saleh ALKhateeb

Manager of Corporate Communication & Digital Marketing

Marketing & Corporate Communication Department

Tel: 00971 (2) 6128774

Mobile: 00971 (50) 6689733

Email: ALKhateebA@adx.ae 

About SICO

SICO is a leading regional asset manager, broker, and investment bank, with more than USD 1.8 Bn in assets under management (AUM). Today SICO operates under a wholesale banking licence from the Central Bank of Bahrain and also oversees two wholly owned subsidiaries: an Abu Dhabi-based brokerage firm, SICO Financial Brokerage and a specialized regional custody house, SICO Fund Services Company (SFS).

Headquartered in the Kingdom of Bahrain with a growing regional and international presence, SICO has a well-established track record as a trusted regional bank offering a comprehensive suite of financial solutions, including asset management, brokerage, investment banking, and market making, backed by a robust and experienced research team that provides regional insight and analysis of more than 90 percent of the region’s major equities.

Since inception in 1995, SICO has consistently outperformed the market and developed a solid base of institutional clients. Going forward, the bank’s continued growth will be guided by its commitments to strong corporate governance and developing trusting relationships with its clients. The bank will also continue to invest in its information technology capabilities and the human capital of its 100 exceptional employees. 

For more information, please contact:

Ms. Nadeen Oweis

Head of Corporate Communications

SICO

Direct Tel: (+973) 1751 5017

Email: noweis@sicobank.com 

© Press Release 2018

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