RIYADH: Amman Stock Exchange is set to introduce its sustainability index by 2025, following an expected integration with the Abu Dhabi bourse, according to a top official.
In an interview with CNBC Arabia, Mazen Wathaifi, CEO of the Jordan-based institution, announced the expected signing of an agreement with ADX, to join the “Tabadul” platform. He also anticipated the launch of the sustainability index in 2024 or early 2025.
In recent years, Amman Stock Exchange introduced several indices, including the ASE20, as a precursor to exchange-traded funds. They also launched the total return index to measure the reinvestment of cash distributions in the market.
Wathaifi highlighted ongoing considerations for completely exempting newly established companies from listing and registration fees.
This incentive aligns with their vision to relieve companies of such costs, extend the trading period, and introduce other inducements to address the liquidity challenge.
The exchange management actively engages with family-owned and limited liability companies, encouraging them to go public.
Also, the CEO stated that Amman Stock Exchange is collaborating with the Jordan Securities Commission to simplify procedures for bond issuances.
According to Wathaifi, discussions are also underway with banks and institutions regarding the issuance of bonds for project financing.
Although Amman Stock Exchange currently has around four bond issuances, they are not actively traded, as reported by CNBC.
During the interview, the CEO anticipated the launch and activation of the market maker mechanism in 2024. He underscored that the exchange had submitted a draft market maker agreement to the Securities Commission and outlined the prepared guidelines for market makers, including licensing conditions and requirements.
Market institutions are working together to establish the organizational, legislative, and technical infrastructure for market makers.
Additionally, Wathaifi shared that the exchange management is exploring options to reduce trading costs. Ongoing discussions with the Jordan Securities Commission also involve the taxation of investment fund funds, with the Incentives Committee having the authority to make decisions to prevent double taxation.
