Hong Kong paves way for UAE listings, recognising Dubai, Abu Dhabi stock exchanges

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Move to attract more Gulf companies to list comes as government advisory body studies Islamic finance to align the city’s financial infrastructure with the needs of the Middle East

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Dubai International Financial Centre. Photo: Shutterstock

Enoch YiuandEric Jiang

Published: 8:50pm, 19 Jul 2024

Hong Kong’s bourse operator has expanded its collaboration with two exchanges in the United Arab Emirates (UAE) to pave the way for its companies to list here, as a government advisory body said it plans to examine Islamic finance to align the city’s financial infrastructure with the needs of the Middle East.

Hong Kong Exchanges and Clearing (HKEX) has added the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) as recognised stock exchanges, allowing companies listed on them to apply for a secondary listing in Hong Kong, it said in a statement on Friday.

The additions came after HKEX last year added the Saudi Exchange (Tadawul) as a recognised bourse and will allow more Middle East companies to consider listing in Hong Kong, said HKEX head of listing Katherine Ng.

“This expansion demonstrates HKEX’s continuous efforts to support companies in one of the world’s fastest growing regions to tap Hong Kong’s markets, home to a diverse Asian and global investor base,” Ng said in the statement.

Hong Kong’s became the first bourse to list a Saudi Arabian exchange-traded fund (ETF) tracking 56 Middle East stocks in November. In May this year Bonnie Chan Yiting, the CEO of HKEX, said the first Middle East listing is only “a matter of time.”

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Separately, the Financial Services Development Council (FSDC), a government think tank that promotes the city as an international financial centre, said it will conduct more studies of Middle East markets and Islamic finance to facilitate Hong Kong’s new status as a “super connecter”.