ABU DHABI, 27th August, 2013 (WAM) — After two years of extensive research and consultation by ADS Holding, the lead and strategic advisor to the Abu Dhabi Global Market (ADGM), has developed the commercial and legal framework which allows ADGM to fill the time-zone gap not covered by the four major international financial markets.
ADGM will operate with compatible, acceptable and applicable laws aligned to all the other major financial hubs, and will offer, for the first time in the Middle East, a new trading option, reducing risk and increasing global liquidity.
ADS Holding has also helped establish the necessary infrastructure supported by latest technologies and financial systems to give ADGM the "necessary DNA" to allow it to be become a market maker and price setter in the region.
Speaking on the occasion, Mahmood Ebraheem Al Mahmood, Chairman of ADS Holding, said, “ADGM will start to take a lead in financial markets from 07.00 to 11.00 local time (03.00 to 07.00 GMT) when it will market-make and produce prices across a range of FX and OTC products. Outside of these hours, it will offer a full range of financial services acting as a bridge between markets in Asia and Europe. ADGM will also offer new financial products for the first time in the region. ADGM will be able to host a full range of financial institutions, commodities and producers as well as local and regional service providers.
"We recognised the global demand for a financial market in the Middle East which could work alongside the four existing major global time-zone markets (Sydney-Tokyo, Singapore-Hong Kong, London, New York-Chicago). This is a very ambitious project which could only be achieved with the backing, commitment and resources of Abu Dhabi. The combination of the geographical location, financial adequacy, stability and vision were all essential in developing this initiative." he added.
Commenting on the practical steps of preparing the legal environment and other requirements for ADGM, Mr. Mahmood said, "In cooperation with Allen ‘&’ Overy, the sole legal advisor of the project, we have created a legal environment which differentiates ADGM from other local and regional financial markets and sets ADGM as a global financial hub. It will meet the needs and requirements of global investors and financial institutions who already operate in the existing four major global financial markets".