ABU DHABI — Foreign investor participation in the Abu Dhabi Securities Exchange (ADX) soared to a four-year high in the first quarter of 2025, driven by sweeping structural reforms, technology upgrades, and a strategic push to attract international capital. The development marks a pivotal step in Abu Dhabi’s efforts to position itself as a regional financial hub.
According to data released by the exchange, foreign investors bought and sold over AED 70 billion ($19 billion) worth of listed securities between January and March, contributing to net inflows of AED 8.54 billion. This elevated their share of total market trading to 42%—the highest level since 2021.
The sharp increase comes on the heels of major reforms spearheaded by ADX Group CEO Abdulla Salem Alnuaimi, who has aligned the exchange’s growth agenda with the UAE government’s broader goals of diversifying the economy and attracting foreign capital.
Structural Overhaul and Market Modernization
At the start of the year, ADX implemented a new corporate group structure, spinning off its post-trading activities into two standalone entities focused on clearance and securities depository operations. Alongside this, the exchange launched a revamped trading platform supporting high-frequency trading, algorithmic strategies, and enhanced transaction speeds—reportedly improving system performance by 400%.
“In 2025, we aim to roll out more trading features, investment products, and support services to welcome new participants and deepen liquidity,” Alnuaimi said in an interview.
Strong Trading Volumes Amid Index Underperformance
While the ADX main equity index underperformed compared to other emerging markets in Q1, trading volumes surged—with the number of shares traded rising 39% and transaction counts increasing 41% year-over-year.
This uptick in market activity, even during global market volatility exacerbated by U.S. tariffs under President Donald Trump, reflects growing investor interest in Abu Dhabi’s capital markets. Alnuaimi said the exchange is betting on technology innovation, product diversification, and the emirate’s economic resilience to sustain interest despite external shocks.
Boosting New Listings and ETFs
As part of its strategic expansion, ADX has also been promoting its “Growth Market” segment—designed for startups and new-age companies in sectors like healthcare, sports, and technology. The platform, which allows firms to list without an IPO, expanded by 34% in 2024, with 14 companies now trading under the segment.
“We’ve simplified the listing process to support private companies in raising capital, gaining visibility, and contributing to Abu Dhabi’s economic diversification,” Alnuaimi said.
In parallel, the exchange’s ETF market witnessed robust growth. Exchange-traded fund assets surged by 109% to AED 784 million in Q1, with ADX now hosting 16 ETFs spanning 10 global and regional markets, including UAE sovereign bonds and international sukuks.
Global Appeal and Local Ambitions
The ADX’s modernization campaign includes partnerships with international exchanges and efforts to facilitate dual listings, aiming to bridge global and regional capital markets. This cross-border strategy, Alnuaimi noted, will play a crucial role in further enhancing liquidity and making Abu Dhabi a preferred destination for both institutional and retail investors.
However, the path forward remains complex. Alnuaimi acknowledged that the stock exchange business is constantly evolving, shaped by geopolitical shifts, digital disruption, regulatory challenges, and changing investor behavior.
“Despite global turbulence, we are committed to building a future-ready exchange that supports Abu Dhabi’s vision of sustainable, diversified growth,” he concluded.
