Entities registered with the Abu Dhabi Global Market or ADGM will now be able to offer and list shares on UAE capital markets.
This is thanks to a Memorandum of Understanding signed between the Registration Authority of the ADGM and the Securities and Commodities Authority or the SCA.
The agreement apparently aims to reinforce regulatory and supervisory cooperation between the two parties.
It was signed by SCA Acting CEO Maryam Butti Al Suwaidi and ADGM RA CEO Dhaher bin Dhaher Al Mheiri.
Under the agreement, the ADGM RA and the SCA will enhance regulatory and supervisory cooperation in regards to the listing of ADGM-registered entities on UAE markets.
The agreement also aims to ensure the safety of transactions and protection of investors, said the local reports.
That is expected to happen through an exchange of information between both parties and assistance in necessary inspections and investigations.
The parties are also expected to cooperate on monitoring the trading and ownership of the entities’ listed shares, as well as the detection of illegal and fraudulent activities to safeguard against money laundering, terrorist financing, and financing of illegal organizations.
Commenting on the agreement, Al Suwaidi said: “The agreement is in line with the SCA’s Resolution No 11/RM of 2016 regarding the offering and issuance of shares on public markets, wherein ADGM registered entities will now be able to offer and list their shares in the UAE’s markets under the applicable listing regulations.:
She added: “It also reinforces the SCA’s existing agreement with the ADGM Registration Authority in the area of supervision and regulatory cooperation.”