The Arab region is qualified to be a stable destination for long-term capital

Abdullah Salem Al Nuaimi, President of the Arab Capital Markets Federation and CEO of the Abu Dhabi Securities Exchange Group, stressed that the Arab region has distinct components that include strong sovereign budgets, clear growth foundations, and supportive political will, which places it in a qualified position to be a stable destination for investing capital in the long term in a world characterized by a state of uncertainty, pointing out that the Federation seeks to provide the institutional framework that translates these components into sustainable confidence in the markets.

Al Nuaimi, who was recently appointed President of the Arab Capital Markets Federation, said in an interview with the Emirates News Agency, WAM, that the appointment reflects the growing confidence in the advanced level reached by the Arab capital markets in general, and not just the Abu Dhabi Securities Market or the United Arab Emirates, indicating that the trust given to him by the member stock exchanges of the Arab Capital Markets Federation represents a responsibility that he deals with with a clear vision and serious commitment.

He said that the capital markets in the UAE have witnessed development based on well-thought-out foundations and a clear methodology, and with the support of the wise leadership, the Abu Dhabi Securities Exchange has adopted a model based on the strength of institutional pillars and continuous innovation, which has contributed to consolidating its position among the most active financial markets in the world, and this is evident in the inclusion of market indices within the MSCI and FTSE indices, the development of the post-trading system, in addition to the expansion of financial products and services.

He added that, as President of the Arab Capital Markets Union, he looks forward to employing this expertise at the regional level, by working on a joint agenda that focuses on accelerating market development, enhancing institutional confidence, and consolidating the role of Arab capital markets in shaping the course of the global financial system.

He said that the Arab capital markets are witnessing a fundamental transformation phase that can be described as pivotal, noting that what was achieved during the past five years was viewed a decade ago as a long-term goal extending over fifteen years.

He explained that this transformation represents a move from markets dominated by individual investors and local focus to markets that are increasingly focused on institutional investors and enjoy broader integration with global markets, pointing out that the wave of initial public offerings in the Gulf Cooperation Council countries demonstrated the ability of Arab markets to attract listings of international size and influence, and attract significant investment interest.

He added that this was reflected in the quality of listed companies, the depth of demand in subscription records, and the development of regulatory and supervisory frameworks, noting that at the same time, maintaining this momentum remains a fundamental priority, as enhancing interconnectedness between markets, developing more coordinated regulatory frameworks, and expanding fixed income and derivatives markets, all represent areas that will witness acceleration in the next phase.

He stressed that the transformation is already underway, but it requires that it be comprehensive at the region level, and not be concentrated in a limited number of markets, indicating that his role is to ensure that this progress extends to include various Arab markets in a balanced and sustainable manner.

He explained that the markets today operate within an environment characterized by continued fluctuations, the re-adjustment of monetary policies at the global level, in addition to the acceleration of technological transformations that are redrawing the balance of competition in financial markets, stressing that these are not temporary challenges, but rather structural factors that will continue to shape the scene in the coming years.

He said that at the level of Arab markets, the state of dispersion still represents the most prominent internal challenge, whether in terms of infrastructure, regulatory frameworks, data standards, or interconnection between markets across borders, indicating that addressing these gaps is a strategic priority, in light of the size of Arab economies and the depth of sovereign liquidity in them.

He added that the role of the Arab Capital Markets Federation is pivotal in this context, through developing flexible and forward-looking regulatory visions that enable markets to compete for the next generation of financial products and attract a broader segment of investors.

He pointed out that his priorities during his presidency are based on three main axes, including enhancing the integration of Arab markets, consolidating their competitiveness, and ensuring the achievement of tangible results through the work of the Union.

He explained that at the level of integration, the focus will be directed towards enhancing interconnection between markets, developing mutual recognition frameworks, and unifying listing and disclosure standards across Arab stock exchanges, pointing out that these elements form the basis for building an integrated Arab capital market capable of attracting and maintaining international institutional capital.

He added that in terms of competitiveness, work will focus on supporting member exchanges in developing advanced product systems, including financial derivatives, deepening sukuk markets, and developing frameworks for digital assets, in addition to tools related to environmental, social, and institutional governance standards.

He stressed that markets that provide an integrated set of investment tools for institutional investors will be the most capable of attracting regional and global capital flows in the next stage.

Regarding institutional excellence, he indicated that the Arab Capital Markets Union will work to invest in research, capacity building, and developing the knowledge infrastructure, which will contribute to raising the level of performance across the various member markets, explaining that the strength of the Union is reflected in the strength of its members collectively.

He stressed that Arab capital markets possess the necessary competencies and ambition to build a system with a sustainable global impact, a level he aspires to achieve during his term as president of the Union.