The Function Of The Abu Dhabi Stock Exchange
A Brief History :
The Abu Dhabi Securities Exchange (ADX) was established on 15 November 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, and give ADX the necessary supervisory and executive powers to exercise its functions.
These functions are:
* Provide opportunities to invest savings and funds in securities in order to benefit national economy.
* Ensure the soundness and accuracy of transactions and to ensure the interaction between demand and supply in order to determine prices.
* Protect investors through establishing fair and proper dealing principles between various investors.
* Impose stringent controls over securities transactions to ensure sound and conduct procedure.
* Develop investment awareness by conduction studies and issuing recommendations in order to ensure that savings are invested in productive sectors.
* Ensure financial and economic stability and develop trading methods in order to ensure liquidity and stability of prices of Securities listed on the market.
Moreover, ADX has the authority to establish centers and branches outside the Emirate of Abu Dhabi. To date it has done so in Fujeirah, Ras al Khaimah, Sharjah and Zayed City.
The Abu Dhabi Securities Exchange’s board of directors is comprised of seven members nominated by Amiri Decree. The members of the board hold office for a term of three years. The first board of directors was constituted by Amiri Decree No. (8) of 2000.
ADX currently lists stocks from companies mostly based in the UAE or neighboring Persian Gulf states like Qatar and Oman. Its board is dominated by companies involved in the financial services sector like banks and insurers.
In early May 2008, the exchange announced that it had rebranded itself from ADSM to ADX, complete with smoother new logo and aimed to add foreign...