Nasdaq OMX has signed a deal with a view to building a network of exchanges to serve emerging Arab capital markets.
The U.S. exchange says it it has signed a memorandum of understanding (MOU) with Arab Common Exchange Holding (ACX Holding) and that they intend to enter an agreement to form a deeper collaboration. Nasdaq said that it will work closely with ACX as it aims to develop a network of pan-Arab regional exchanges.
The MOU will create a task force to layout the framework of the partnership, which will ultimately lead to establishing and operating a fully-fledged exchange in Bahrain. The exchange they envision will operate both a conventional platform and an Islamic-compliant one; and, it will list different types and sizes of companies, real estate projects, and various conventional and Islamic financial instruments.
“We consider the Arab League’s initiative a prime opportunity for Nasdaq OMX to assist ACX in further developing the Arab capital markets,” said Lars Ottersgård, senior vice president, market technology, Nasdaq OMX. “We look forward to exploring all opportunities with ACX in this new, interesting development.”
“ACX has embarked over the past year to develop a plan of action and preparation of necessary studies and business models appropriate for the development of the investment environment,” said Safar Al Harthi, chairman of ACX. “This includes the development of flexible mechanisms to ensure the flow of Arab capital, regional and foreign development projects of all sizes and sectors in the Arab world.”