Finance House to invest $81.67 million in Abu Dhabi capital market

To enhance liquidity and stability in the UAE financial markets, Finance House and its brokerage arm, Finance House Securities, have entered into a new cooperation agreement with the Abu Dhabi Securities Exchange (ADX). This collaboration aims to boost local market liquidity and strengthen financial stability, aligning with the vision and strategy of the Abu Dhabi Securities Exchange.

Under the agreement, Finance House will inject 300 million dirhams (approximately $81.67 million USD) into the local market through its brokerage firm. This will help increase investment and improve liquidity in the stock market. Finance House CEO T.K. Raman emphasized that this agreement reflects their commitment to providing solutions that adhere to best practices. He stated that their goal is to improve liquidity and stability in the financial markets while also promoting economic activity in the UAE.

Raman also highlighted that innovation is key to market success and noted that the achievements of the Abu Dhabi Securities Exchange are crucial for driving economic growth and sustainable development in the UAE, while also enhancing investor confidence and stimulating broader economic progress. Ayman Al Khatib, General Manager and Managing Director of Finance House Securities, stated that the agreement represents a key step in optimizing Finance House's financial resources, improving the operational efficiency of the brokerage firm, and facilitating better capital utilization. He expressed optimism about making a lasting positive impact on the market.

Furthermore, the Abu Dhabi Securities Exchange (ADX) announced in early October the launch of a city-wide campaign called "Understanding Financial Investments and How to Invest in the Securities Market." This initiative aims to strengthen the financial and investment knowledge of the business ecosystem and communities across the emirate by promoting inclusive financial education, thereby reinforcing its commitment to environmental, social, and governance (ESG) principles. The announcement coincided with ADX's participation in the global "Ring the Bell for Financial Literacy" initiative led by the International Organization of Securities Commissions (IOSCO) and supported by the World Federation of Exchanges (WFE), which focuses on raising financial literacy and protecting investors.

The financial education program will include a series of workshops organized in collaboration with ADX member firms. Recently, ADX and its brokerage partner, BHM Capital, co-hosted two workshops with Abu Dhabi National Oil Company (ADNOC) Distribution and the Abu Dhabi Department of Economic Development (DED). These sessions covered a wide range of topics, including introductions to the securities market, the importance of investing, investment strategies, risk management, and identifying investment opportunities in listed companies. Additionally, this financial education initiative complements ADX's ongoing collaborations with local academic institutions, universities, and business associations to enhance investment knowledge and improve financial literacy in the UAE.

ADX is actively seeking more partnerships with other prominent organizations in the UAE to expand the reach of its financial literacy initiatives. By broadening its educational outreach, ADX aims to foster a more inclusive investment environment, aligning with Abu Dhabi’s overarching vision for sustainable economic diversification. Moreover, in October 2024, the Abu Dhabi Securities Exchange reported the completion of 15 significant direct deals involving shares of ADNOC Gas and Modon Holding, totaling 2.66 billion dirhams (approximately $724.2 million USD).

According to ADX data, the first transaction involved approximately 505.8 million shares of Modon Holding, valued at 2.44 billion dirhams, executed through six major trades at a price of 4.83 dirhams per share. The second transaction included approximately 71.5 million shares of ADNOC Gas, valued at 218.2 million dirhams, executed through nine major trades at a price of 3.05 dirhams per share. These significant direct deals occurred outside the order book, meaning they do not affect the closing price or price indices of the companies' shares. Furthermore, they do not impact the highest and lowest prices recorded during the trading session or over the past 52 weeks.

Additionally, in September, ADX announced that Bayanat AI PLC had officially changed its name to Space42 PLC, effective October 1, 2024, following its merger with Al Yah Satellite Communications Company PJSC. Trading of the new shares of Space42 PLC began on October 1, while the last day of trading for Al Yah Satellite Communications Company PJSC's shares was September 30.