The Abu Dhabi Securities Exchange (ADX) and Tel Aviv Stock Exchange have signed a Memorandum of Understanding, creating a framework for financial industry and technology collaborations.

Why should we care?
The MOU marks the first time an exchange from an Arab state has entered into a commercial relationship with Israel. It provides an enabling foundation for further communication between the exchanges, and contributes to the growth of capital markets in Israel and the UAE. Potential areas of collaboration include the cross listing of securities; mutual trading by each exchange’s respective members; fintech initiatives and other market infrastructure technologies; and data sharing to facilitate the development of new products. “Innovation and technology form such a key component of collaboration between the UAE and Israel,” said Saeed Hamad Al Dhaheri, chief executive of ADX, in a statement. “This is especially relevant for ADX because it will encourage entrepreneurial businesses to attract investors and access to capital, a core element of our growth strategy."