DFM vs ADX

Abu Dhabi Securities Exchange (ADX)

History

The ADX was created on November 15, 2000. The government granted the exchange with legal autonomy, and provides the ADX with the provisions, both supervisory and executive, to fulfill its function. Basically, it’s a separate entity that, although government-owned, is independent. Unfortunately for the ADX, there was little fanfare internationally when it was formed, which accounts for its low score. Score: 4

Vision

According to its website, the “Abu Dhabi Securities Exchange aspires to become the market of choice in the region.” What? Did the ADX cut and paste its favorite parts of the DFM’s vision? They could have worked on the statement a little more. Score: 2

Investor relations

Like the DFM, you’d be hard-pressed to get someone on the line at the ADX. First, you’ll have to ring them repeatedly before someone picks it up. Then you’ll need to use your well-tune telecommunication skills to get the bored, and highly unmotivated person at the other end to get what you’re saying. We at Kipp lack those skills, so we couldn’t get our request across. Score: 0

Public relations

Like the DFM, the public relations officer (if he or she exists) is as inaccessible as a home loan. If you succeed in getting through to the ADX operator, and if, with the help of magic and a small prayer, he or she understands your request, you’ll be transferred from one individual to the next. If you’ve ever dealt with a government-owned institution, you’ll know what we mean. Score: 1

Performance

The ADX has fallen 47 percent in 2008, and has hit its four year low of 2,502 points on Monday. But given that its neighbor, the DFM, is doing considerably worse and attracting most of the negative press, the ADX has been spared the media spotlight. That said, it appears the market has been as affected as others in the region by investors’ lack of confidence. Score: 3

Final score: 10

The DFM wins our brand comparison by a tiny margin of one point. Although, if we were honest with ourselves, neither one is better or worse than the other. Ultimately, they’re both governed by the Emirates Securities and Commodities Authority (ESCA) and are at the mercy of frantic investors who buy and sell without (what appears to be) reason.