The Abu Dhabi Securities Exchange, ADX, Chief Executive said on Monday that the recent UAE Cabinet approval of a draft law amending provisions within the Agency Law is considered as a "pivotal step forward towards enhancing the UAE’s trade and investment development".

In a statement, the ADX Chief Executive Khalifa Salem Al Mansouri added, "The amended law intends to encourage both the transformation of family-owned business to join our country's financial markets and the UAE nationals to invest in public shareholding companies granting them with the expected necessary statutory protection."

Federal Law No. 18 of 1981, or the 'Agency Law', regulates commercial agency and distribution agreements within the country. On Saturday, the UAE Cabinet approved a draft law amending provisions within the law to enhance the capabilities and continuity of family businesses, as well as to establish rules of governance and protection from defaulting.

"The move will directly benefit ADX's customer-centric strategy in contributing towards bolstering the UAE economy by increasing investment opportunities through the provision of both high quality services and tailored financial products," Al Mansouri continued.

"Those designed to provide stable financial performance with diversified sources of income for all investors. The new law should encourage family-owned companies to take advantage of ADX's advanced technological infrastructure to convert into joint stock companies," he added.

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