Citi in custody, clearance deal

Citi has signed an agreement with Dubai Financial Market and Abu Dhabi Securities Exchange to provide direct custody and clearance services for institutional investors. The deal will also cover transactions at Nasdaq Dubai.

"The services will boost transactions on the UAE stock markets by offering clearing and settlement services for institutional investors, brokers and foreign custodians," said Mohammed Al Shroogi, Citi's Managing Director, Middle East, and CEO, the UAE.

"Citi's global transaction services will offer integrated cash management, trade, securities and fund services to foreign institutions investing in the UAE stock markets.

"We are expecting increasing interest in the UAE stock markets from Middle East institutions."

Citi has already launched the services in Egypt and Morocco and plans to extend them into other GCC.

"Citi's direct custody and clearing services cover 57 markets around the world with assets under custody and trust of around $11 trillion (Dh40.3trn). Expanding in the UAE will give global institutional investors the ability to invest in the country's stock markets as the prices become very attractive."

Hassan Al Serkal, Senior Vice-President and Chief Operating Officer, DFM, said the deal will open up new investment channels for the market as it would attract more foreign cash.

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