ADX and Borsa Italiana move to link UAE and Europe capital markets

Abu Dhabi’s main stock exchange and Italy’s bourse have taken a formal step towards closer capital-market integration, signalling ambitions that extend beyond headline listings to the plumbing of cross-border settlement and custody.

The Abu Dhabi Securities Exchange Group, ranked among the world’s top 20 exchanges by market capitalisation, and Borsa Italiana, part of the Euronext group, signed a letter of intent during the Abu Dhabi Investment Forum in Milan. The agreement outlines a framework to explore dual listings across ADX and Euronext markets, alongside collaboration on post-trading interoperability and connectivity between central securities depositories.

Executives from both sides described the initiative as the groundwork for a new investment corridor linking Gulf and European capital. For ADX, which has grown rapidly through state-linked listings, privatisations and a widening foreign investor base, the partnership offers an avenue to attract European capital and issuers seeking access to Middle East liquidity. For Borsa Italiana and Euronext, it provides a route to Gulf investors and companies at a time when energy transition, infrastructure and technology financing is drawing increasing interest.

The proposed dual-listing framework would allow eligible companies to list securities on both venues, subject to regulatory approvals and market rules. Market participants say this could be particularly attractive for large corporates with operations spanning Europe and the Gulf, as well as for Abu Dhabi-based firms looking to raise their international profile. Dual listings can deepen liquidity, broaden analyst coverage and diversify investor bases, though they also require careful alignment of disclosure standards and ongoing compliance obligations.

Beyond listings, the emphasis on post-trading cooperation is seen as strategically significant. The LOI highlights exploration of interoperability between clearing and settlement systems, as well as direct connectivity between central securities depositories. Such infrastructure links can reduce settlement risk, streamline cross-border trades and lower costs for institutional investors operating across regions. For asset managers and custodians, smoother CSD-to-CSD connectivity could make it easier to hold and transfer securities listed in different jurisdictions without complex intermediated structures.

The initiative fits within a broader pattern of ADX expanding its international partnerships. Over the past few years, the exchange has pursued memoranda and technology collaborations with global peers, while investing heavily in digital market infrastructure, derivatives products and data services. Its parent group has positioned Abu Dhabi as a regional hub for capital formation, supported by sovereign wealth capital and a regulatory environment aimed at attracting foreign participation.

Borsa Italiana’s inclusion brings the weight of Euronext’s pan-European network, which spans multiple countries and asset classes. Since joining Euronext, the Milan exchange has been integrated into a single trading and clearing framework, offering issuers access to a wide investor base across Europe. Linking this ecosystem with ADX could amplify cross-border flows, particularly as European investors look for diversification and exposure to growth markets.

Market analysts caution that letters of intent do not guarantee execution, noting that regulatory coordination will be crucial. Aligning listing rules, accounting standards, settlement cycles and investor-protection frameworks across jurisdictions can be complex. Any move towards dual listings or interoperable post-trade systems would require approval from regulators in the UAE, Italy and other European markets involved through Euronext.

Still, the timing reflects shifting global capital dynamics. Gulf exchanges have gained prominence as energy revenues, sovereign investment strategies and economic diversification plans fuel domestic market growth. European bourses, facing subdued listings activity in some sectors, are increasingly open to partnerships that can unlock new issuer pools and investor demand. The Milan forum setting underscored Italy’s role as a bridge between European finance and Middle East investment flows, particularly in infrastructure, manufacturing and energy.

Executives familiar with the discussions say initial work will focus on technical feasibility studies and identification of pilot opportunities, rather than immediate high-profile listings. Post-trading interoperability, while less visible to the public, could deliver early benefits by improving efficiency for institutional investors already active across both regions.