Abu Dhabi stock market cuts trading fees by 22%

Abu Dhabi stock market cuts trading fees by 22%
It is the second time ADX has reduced fees. (File/Shutterstock)
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Updated 07 February 2021

Abu Dhabi stock market cuts trading fees by 22%

Abu Dhabi stock market cuts trading fees by 22%
  • The fee cut will come into effect from Feb. 14 as part of its new ADX One strategy

The Abu Dhabi Securities Exchange (ADX) has announced plans to cut trading fees by 22 percent, one of a number of initiatives designed to boost activity and liquidity on the bourse.

The fee cut will come into effect from Feb. 14 as part of its new ADX One strategy to double the market capitalization of companies listed on the exchange by 2024.

It is the second time ADX has reduced fees, the previous cut being in June 2019. Under the new plan, fees of all transactions that occur on ADX will be reduced to 0.175 percent from 0.225 percent from Feb. 14.

In another initiative to boost trading volume, ADX brokerage firms that generate 20 million UAE dirhams ($5.45 million) or more in trading commission will be exempt from paying any trading commission fees for the year.

ADX Chairman Mohamed Ali Al-Shorafa Al-Hammadi said: “Reducing overall transaction costs for trading on the exchange is one of many initiatives we are undertaking to achieve our strategy of attracting new liquidity sources and making listing and investing in ADX an attractive value proposition.”

The market capitalization of stocks listed on ADX reached 750 billion dirhams for the first time in 2020, a 39.7 percent increase from 533 billion dirhams in 2019.

The number of foreign investors on ADX increased 38 percent in 2020, while the value of shares they traded rose by 6.5 percent to 62.6 billion dirhams. Trading by institutions rose 35.6 percent to 111.1 billion dirhams last year.

According to data by Zawya, ADX was one of the best-performing stock markets in the region in January, up 10.9 percent to 5,593.5 points. It rose to 5,676.15 points by the middle of the month, achieving a 15-year high.

The main gains were in the insurance-related sector. The volume of trades rose 3.8 percent to 2.2 billion, while the value of trades was up 20 percent month-on-month to 10 billion dirhams.

 


UAE-based digital shipping platform Palletpal raises $200K

UAE-based digital shipping platform Palletpal raises $200K
Updated 14 sec ago

UAE-based digital shipping platform Palletpal raises $200K

UAE-based digital shipping platform Palletpal raises $200K

RIYADH: UAE-based digital shipping platform Palletpal has raised $200,000 in a pre-seed round from US venture capital firm Draper Associates.

The startup gives companies across the Middle East better control over their shipments whether they are transported by air or sea, allowing them to keep an inventory of the entire shipping process from purchase to delivery.

The company plans to use the newly raised funding to grow its brand, expand its team and fine-tunie its minimal viable product (MVP).

Palletpal caters to small businesses using an extensive independent network of 50 freight forwarders and carriers, according to founder Adel Hamwi.

“These businesses are moving a large volume of products, and they're being out-priced by large players because the amount of volume that they provide is not enough for them to affect the margins on the forwarder side. We're giving the power back to the customer. You come to us and fill out a request, and then we will find you the best deal,” Hamwi said.


Luxury chain St. Regis Hotels & Resorts outlines Middle East and North African expansion by 2025

Luxury chain St. Regis Hotels & Resorts outlines Middle East and North African expansion by 2025
Updated 14 min 17 sec ago

Luxury chain St. Regis Hotels & Resorts outlines Middle East and North African expansion by 2025

Luxury chain St. Regis Hotels & Resorts outlines Middle East and North African expansion by 2025

CAIRO: High-end hotel chain St. Regis Hotels & Resorts plans to open new sites in the Middle East and North Africa over the next four years as it boosts its global presence.

The Marriott International-owned brand is set to open The St. Regis Marsa Arabia Island, The Pearl, in Qatar in early 2022.

Further openings are scheduled in Oman with Al Mouj Resort in Muscat in 2024, and the Marrakech Resort in Morocco slated for 2025.

The chain already operates hotels across the region in such countries as Egypt, the UAE and Qatar.

Marriott International said in a statement: “St. Regis has 49 open hotels and resorts today, with 29 hotels and resorts in its pipeline, representing expected growth of nearly 60 percent over the next five years in both urban and leisure destination.”

Other hotel openings are planned in the US, Caribbean and Asia Pacific regions over the period.


Economic growth in the UAE will peak next year: Beltone forecast 

Economic growth in the UAE will peak next year: Beltone forecast 
Updated 20 min 9 sec ago

Economic growth in the UAE will peak next year: Beltone forecast 

Economic growth in the UAE will peak next year: Beltone forecast 

Abu Dhabi: The UAE's main economic indicators will achieve their highest growth rates in a decade during 2022 with the support of Expo 2020, Egypt-based investment bank Beltone has forecast.

It predicts growth in private spending, non-oil GDP, tax and tourism revenues, with additional expenditure on consumer goods and services during the Expo months, Asharq news reported.

Beltone expects that the total number of visitors to the UAE from around the world will reach 10 million in the period from October 2021 until the end of March 2022.

However, this is less than the pre-pandemic target of 18 million visitors.


ENGIE-led consortium closes financing for Saudi largest solar-powered water desalination plant

ENGIE-led consortium closes financing for Saudi largest solar-powered water desalination plant
Updated 26 min 42 sec ago

ENGIE-led consortium closes financing for Saudi largest solar-powered water desalination plant

ENGIE-led consortium closes financing for Saudi largest solar-powered water desalination plant
  • The plant, supplying potable water to Jubail and Dammam, will have a 60MW capacity solar facility - the largest in-house solar capability for a desalination plant in the Kingdom

RIYADH: Saudi Water Partnership Company (SWPC), in association with the consortium led by France-headquartered ENGIE has achieved financial close on the Jubail 3B Independent Water Project (IWP), the largest solar-powered water desalination project in the Kingdom.

The project is part of the water schemes in Saudi Arabia developed under the public-private-partnership (PPP) structure, Engie said in a statement. The consortium is developing and financing the desalination plant, which will be operated and maintained by ENGIE. The Jubail 3B project was awarded by SWPC as a build, own, operate (BOO) contract, with commercial operation expected in 2024, it said.

ENGIE holds 40 percent of the project, while Saudi based Nesma Co. and Abdulaziz Al Ajlan Sons for Commercial and Real Estate Investment hold 30 percent each. 

On 29 April, SWPC awarded the ENGIE-led consortium a 25-year Water Purchase Agreement, and the contract was signed on 22 June.


Saudi firm Tabuk Pharmaceutical strikes deal to manufacture Leosons products in the MENA 

Saudi firm Tabuk Pharmaceutical strikes deal to manufacture Leosons products in the MENA 
Updated 26 min 40 sec ago

Saudi firm Tabuk Pharmaceutical strikes deal to manufacture Leosons products in the MENA 

Saudi firm Tabuk Pharmaceutical strikes deal to manufacture Leosons products in the MENA 

RIYADH: Saudi-based Tabuk Pharmaceutical Manufacturing Company has announced an exclusive agreement with Leosons Overseas Corporation to manufacture and sell Leosons products in the MENA region,

The agreement gives Tabuk Pharmaceutical an immediate take over of the US-based company's existing business in more than 10 markets, with future expansion plans to include new regions and products.

Tabuk Pharmaceutical will have the right to register, manufacture, and commercialize a range of 14 brands in several countries in the MENA region, according to the agreement.

"We consider this partnership a step forward towards augmenting our plans for long-term growth and strengthening Tabuk’s over the counter business with direct contact with patients,” Wisam Alkhatib, vice president of Strategy and Business Development at Tabuk Pharmaceuticals said.
 
“We believe our partnership with Tabuk Pharmaceuticals is transformational especially in Saudi Arabia,” John L. Ohanian, President of Leosons said.