Abu Dhabi Global Market, the international financial centre of Abu Dhabi, UAE (ADGM) and Shanghai Stock Exchange (SSE), China’s largest securities exchange, have today entered into a Memorandum of Understanding (MOU) to co-operate on the establishment of a “Belt and Road” Exchange in ADGM. This co-operation harnesses Abu Dhabi’s strategic position along the Silk Road Economic Belt, ADGM’s regulatory regime and SSE’s position as one of the largest and fastest growing global exchange. The international exchange aims to fulfill the investment and financing needs for issuers, investors and market participants within the MENA region, along the Belt-and-Road route, and globally.
“We are pleased to support China’s “One Belt One Road” initiative and look forward to further strengthening our relationship with Shanghai Stock Exchange as the “Belt and Road” Exchange is developed within ADGM. We will work closely with our partner to better serve the ever-increasing capital and investment needs of both markets and our respective pools of international industry participants,” indicated ADGM CEO Financial Services Regulatory Authority Richard Teng. “As an international financial centre in Abu Dhabi, ADGM will continue to engage in and support ground-breaking initiatives that enhance the local financial services environment and those that lead to the acceleration of growth opportunities that bolster the economies of Abu Dhabi, the UAE and the broader MENA region.”
This MOU marks the culmination of a close relationship developed between ADGM and SSE, including on-site visits and extensive engagement with key stakeholders in both markets that covered a wide spectrum of focus areas including regulatory requirements, legal frameworks, alongside investment requirements of potential local and global market participants.
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When established, the “Belt and Road” Exchange in Abu Dhabi will serve as a key international capital-raising platform supporting Chinese enterprises, foreign companies and global organisations to finance their investments, including along the Silk Road Economic Belt network.
“Shanghai Stock Exchange is pleased to enter into this landmark MOU with Abu Dhabi Global Market,” stated Shanghai Stock Exchange Deputy President QUE Bo. “We will continue to work closely with ADGM and strategic partners to determine the operational model, product offerings and critical path to success in achieving the common objective of establishing a world class One Belt One Road Exchange.”
Since 2015, ADGM has entered into discussions and significant co-operation arrangements with eminent and key authorities in China including the People’s Bank of China, the China Banking Regulatory Commission, the China Securities Regulatory Commission, Shanghai Free Trade Zone, Qianhai Authority, the State Administration of Foreign Exchange and the financial communities and others.
ADGM noted that these mutually-beneficial co-operative arrangements are focused on increasing cross-border activity, business expansion and regulatory collaboration between Abu Dhabi, the UAE and China. Through these partnerships, ADGM will continue to meet the long-term financial and investment needs and interests of the UAE and China.