Today it can be said confidently that the Abu Dhabi Stock Exchange (ADX) is one of the most competitive in the region. Even though it is just over 20 years old, the exchange provides credible value propositions for companies and some of the highest dividend yields and growth in emerging markets for investors.
This ascent has been purposeful. The exchange always aims to deepen its market strength and seeks to pursue liquidity, with the goal of contributing to Abu Dhabi’s economic transformation and diversification. Time and again, ADX has enabled investors from far and wide to tap into Abu Dhabi and the UAE’s growth story.
In the past decades, the exchange has served as powerful platform that has connected markets, participants, and opportunities across the world to become a trusted name in the global financial ecosystem, with a reputation that stretches beyond the UAE.
The success of the stock market is very much linked to economic success and the policies that support the latter. Bold and decisive actions by policymakers and key participants in the ecosystem have been essential to success, with regulations being top of mind.
A big part of this story is the ongoing evolution of a strong regulatory framework, which is essential for the functioning of a leading stock exchange. On the contrary, a lack of regulation can lead to risk and financial loss.
In 2024, we saw significant activity with many high-profile Initial Public Offerings in both Abu Dhabi and Dubai, including Talabat, Lulu Retail, ADNH Catering, NMDC Energy, Alef Education, Spinneys, and Parkin. These listings demonstrate the high level of confidence in the UAE’s exchanges and regulation.
Mohammad Yaser Bader
Group Chief Financial Officer
Recently, we’ve seen the ecosystem further expand options for listing stocks publicly, when ADX, Abu Dhabi’s Department of Economic Development, and the Securities and Commodities Authority (SCA) collaborated to introduce the first Special Purpose Acquisition Company (SPAC) regulatory framework in the Arabian Gulf.
SPACs offer a faster and more flexible alternative for taking a private company public. As an investment vehicle, a SPAC raises capital through an IPO, then uses the funds to acquire or merge with an existing private company. The first SPAC listed on ADX in May 2022 and agreed to acquire United Printing & Publishing (UPP) later, which subsequently rebranded as E7 with new funds to fuel expansion plans in sustainable packaging and high-growth security solutions.
With this added pathway for private companies to go public, backed by a robust regulatory framework, Abu Dhabi is even better placed to offer investors worldwide access to unique growth opportunities.
In 2025, we foresee that more state-owned enterprises across energy, infrastructure, and utility sectors may also go public as part of the government’s economic strategy, most likely as a traditional IPO.
The favourable economic conditions, including strong projected GDP growth and potentially less geopolitical tensions in the region impacting sentiment, create an attractive environment for companies considering IPOs in 2025.
The availability of SPACs could also give more private UAE-based companies, especially home-grown start-ups, a fast-track route to tapping into this potential, creating more opportunities for investors and helping grow the innovation economy.
What comes next? With a flexible approach to listing, dynamic IPO activity, surging market cap, and a world-class regulatory foundation, the Abu Dhabi ecosystem will continue to grow not only in scale, but also in the diversity of opportunities offered. We can also expect greater interest from global investors seeking unique growth opportunities on ADX, backed by the confidence provided by SCA oversight. That could truly transform ADX on the global stage.