This follows the successful completion of a public consultation on the introduction of a robust crypto asset regulatory framework by ADGM Financial Services Regulatory Authority (FSRA) on 28 May 2018.
 
The framework is designed to address the full range of risks associated with crypto asset activities, including risks relating to money laundering and financial crime, consumer protection, technology governance, custody and exchange operations. This new framework is one of ADGM’s many efforts and ongoing commitment to bolster the economic diversification of Abu Dhabi through innovation and sustainable initiatives.
 
Feedback to the public consultation has been very positive, with local and global respondents highlighting the comprehensive nature of the proposed regulatory framework. Taking into account constructive comments from these respondents, several refinements have been made to the regulatory framework, with a key change being the implementation of the Daily Value Trading Levy imposed on Crypto Asset Exchanges on a sliding scale basis.
 
Richard Teng (pictured), Chief Executive Officer, FSRA of ADGM, says: “We are encouraged by the significant global and regional interest from exchanges, custodians, intermediaries and other institutions to our crypto spot regulatory framework. Globally, responsible crypto asset players are seeking a regulatory regime upholding high standards that foster market confidence. By introducing a comprehensive and best-in-class regulatory framework, the FSRA is taking a leading role in instilling proper governance, oversight and transparency over crypto asset activities, positioning ADGM as a destination of choice for crypto asset players. Our engagement with fellow global regulators also validated our position that the key risks highlighted have to be addressed for crypto assets to be more widely accepted and institutionalised.”
 
The FSRA today also published its ‘Guidance – Regulation of Crypto Asset Activities in ADGM’ and application form for interested applicants to operate a crypto asset business within ADGM. The Guidance elaborates on ADGM’s approach towards the regulation of crypto asset activities and is a useful resource for interested applicants.
 

This significant milestone augments the recent development and agreement with world-leading arbitral institution, the International Court of Arbitration of the International Chamber of Commerce (ICC Court), to launch its Middle East representative office in ADGM.
 
The ADGM Arbitration Centre will be equipped with state-of-the-art technology and hearing facilities, which will be available to all parties seeking to resolve their disputes through arbitration or mediation. The centre will also provide best in-class training in dispute resolution services. The centre, which is expected to be fully operational by the first quarter of 2018, will be based in Al Maqam Tower on Al Maryah Island.
 
The ICC Court is the leading arbitral institution, with a long-standing and highly respected reputation as the benchmark for international dispute resolution. It has administered disputes in a total of 23,000 international commercial, business and investment arbitration cases since 1923, and is widely used in international transactions in the Middle East.
 
The ICC Court’s representative office is expected to become operational by January 2018. The local staff will in due course be able to accept the registration of arbitration cases under the ICC Rules, which will then be administered by one of the ICC Court Secretariat’s existing case management teams.
 
ADGM stands out as a leader in the MENA region with its modern, pro-arbitration framework that has been modelled on the UNCITRAL Model Law. ADGM has made contemporary modifications and enhancements to the UNCITRAL Model Law to ensure it is a seat that reflects best international arbitration practice and to accommodate the needs of users in the MENA region.
 
Ahmed Al Sayegh (pictured), Chairman of ADGM, says: “I warmly welcome ADGM’s long-term engagement with ICC, a highly regarded global leader in arbitration. These significant developments underscore ADGM’s commitment to having a strong global presence in dispute resolution that accords with the outstanding services expected of a leading international financial centre. I look forward to our working with ICC in the continued successful expansion of its business.”
 
 
Alex Bevan, partner in Shearman & Sterling’s International Arbitration Group and head of the firm’s Abu Dhabi office, says: “This is a great development. ADGM has shown real leadership in the arbitration field, first by passing a progressive and modern arbitration law and now by setting up an Arbitration Centre and attracting a major global arbitration institution like the ICC to establish its regional presence here. In ADGM, users of arbitration in the region now have the option of a top-quality arbitration venue.”
 
Essam Al Tamimi, Senior Partner at Al Tamimi & Company, says: “The establishment of the ADGM Arbitration Centre, as well as the establishment of the ICC representative office, constitute a tremendous vote of confidence in the UAE as a leading seat for international arbitration in the region and also globally. The expected and timely enactment of a UAE Federal Law on Arbitration later this year will only further bolster the position of the UAE in this respect.”
 
Thomas Snider, Partner and Head of Arbitration at Al Tamimi & Company, says: “The ADGM announcement could not be more timely. Based on client feedback, we believe there will be significant market demand for an international arbitration centre in Abu Dhabi. We applaud ADGM on taking the initiative to establish the Centre and welcome the ICC’s establishment of a representative office here in the UAE, both of which will strengthen the UAE’s international arbitration infrastructure.”
 
James Abbott, Partner, Head of Middle East Dispute Resolution, Clifford Chance LLP, says: “The announcement of the ADGM Arbitration Centre and the ICC Representative office is a great initiative both for the ADGM and for the UAE and the international arbitration community generally. It will enhance the ability of Abu Dhabi and the UAE to attract greater Foreign Direct Investment and will give both domestic and international arbitration users further choice in their arbitration and dispute resolution options in the UAE.”

The independent and owner-managed financial services group has been granted a licence to act as an administrator of collective investment funds. Last year it was authorised to provide trust services in the region and is currently the only authorised trust company in the UAE that is operating from a regulated offshore location. 
 
“The Middle East is a fast-growing region and PraxisIFM has seen a developing interest in the area from our existing fund clients. ADGM is a strategic platform and partner in the Middle East for foreign investment advisors looking to invest in the region or attract Middle East investors,” says Chris Gambrell, managing director, Praxis Fund Holdings Limited. 
 
“ADGM offers an attractive, alternative jurisdiction where funds can be domiciled or fund administration can be carried out. It’s somewhere ‘local’ for Middle East clients, advisors and managers. It means greater choice, opportunity and flexibility for clients and opens doors to new Middle Eastern markets.”
 
Wai Lum Kwok, executive director of Capital Markets, Financial Services Regulatory Authority, ADGM, says: “We welcome PraxisIFM on board as a member institution of ADGM.  As an International Financial Centre, ADGM provides an open and trusted regulatory environment for local and global financial institutions to conduct their business and tap opportunities in the region’s growth markets.  We will continue to maintain a well-regulated, inclusive and efficient funds platform for fund services providers such as PraxisIFM to cater to the needs of investors and industry stakeholders alike.”
 
The licence builds on PraxisIFM’s growing presence in the Middle East; earlier this year the company acquired Dubai-based Ryland Gray.
 
Ryland Gray, which was established in Dubai in 1995, has rebranded as PraxisIFM Consultancy FZE and offers financial administration and corporate consultancy services across the Arab Gulf Cooperation Council States. It specialises in innovative structural financial solutions for corporate and institutional clients.

 
Under the in principle approval, the grant of financial services permission to act as the administrator of a collective investment fund in the ADGM is subject to final regulatory review of certain pre-conditions being fulfilled.
 
Having recently acquired Equinoxe Alternative Investment Services, with the backing of Genstar Capital, Apex has stepped up to be ranked one of the world’s top 15 largest fund administrators. The group was founded in 2003 and has been servicing clients in the MENA region for over a decade; with the Dubai office established in 2006 and the Abu Dhabi office subsequently launching in 2012.
 
Venki Subramaniam (pictured), managing director, Apex Fund Services Abu Dhabi, says: “Abu Dhabi’s economic development and diversification plan has a strong positive impact on the asset management space and we are excited to be leading the way with the region’s development by being the first administrator to receive ‘in principle approval’ from the ADGM. Apex is already regulated in thirteen jurisdictions globally, therefore global standards are already in place at our Abu Dhabi office meaning the transition will be smooth; we look forward to further promoting compliance and best practice across the region.”
 
Wai Lum Kwok, executive director of the capital markets intermediaries of the FSRA of ADGM, says: “As an International Finance Centre, ADGM offers an open, well-regulated and efficient funds and investment platform that serves the needs of both local and global stakeholders. We welcome more leading firms and fund administrators like Apex Funds Services to add to the vibrancy of our financial ecosystem and accelerate the funds activities at ADGM and wider region.”

BlueStar offers seven indexes, six equity and one fixed income, all focused on Israeli markets and Israeli companies listed globally. The firm’s flagship ETF is focussed on Israeli technology.

BlueStar partnered with ETF Managers Group (ETFMG), a registered investment adviser and ETF issuer that provides the infrastructure and management to index firms and asset managers to launch ETFs.

In the macro perspective, Schoenfeld explains that Israel used to be an emerging market and graduated to developed market status within the FTSE world index in 2009 and within MSCI in 2010. “When it was in the emerging market universe together with Southeast Asian, Eastern European and Latin American countries, it was around 3.5 per cent of the emerging market universe,” Schoenfeld explains.

It graduated in 2010 and now sits alongside the developed markets of the US, Japan and the UK. “Even though having graduated is a good thing, it’s like playing against teams of the top economies,” Schoenfeld says.

“Israel is one of the best performing economies in the world but its market capitalisation is small relative to the US, the UK and Japan.  Its weight in the major FTSE and MSCI global indexes is only 50 basis points or less. It went from being a medium sized fish in a small lake to being a tiny fish in a giant ocean.”

 “We are very optimistic about ITEQ’s potential,” states Joshua Kaplan, BlueStar’s Director of Research; “A key thesis underlying the case for investing in Israel and Israeli technology, is that despite the excellent performance of the economy and its companies, the market is being ignored for structural reasons.”
Schoenfeld adds that the aim of BlueStar is to raise the visibility of Israel as an investment story to general investors. “Israeli companies don’t always make it to the big technology indexes,” Schoenfeld says, “and yet you have Israeli companies that are world leaders in any numbers of fields. There is a compelling set of companies with promising prospects being ignored by investors.”

Domestic Israeli institutional investors are also under-invested in Israeli technology stocks because most of these tech companies are listed outside of Israel and local benchmarks tend to include only stocks listed on the Tel Aviv Stock Exchange.

The troubled history of Israel has encouraged the growth of technology, Schoenfeld says. “Israel excels in technology because of a confluence of several ingredients, like a good recipe. A combination of strong educational institutions and a military sector that uses technology exist. Israel needed to fight in many wars and innovate with military technology – leading to the development of unmanned vehicles, cyber security, world-class surface-to-air missiles, sophisticated radars systems – a lot of these applications developed in the military and can be adapted to civilian use.”

Ituran provides location and control technology for stolen vehicles but its roots lie in tracking a shot down pilot or stolen cars. “This is being used in Brazil and Russia and now Ituran’s technology is being used for tracking delivery vans and truck fleets,” Schoenfeld explains.

Schoenfeld believes that after the US’s Silicon Valley, Israel has the most robust ecosystem for technology in the world. “Israel has a small domestic market so our entrepreneurs have to think global and unlike in the US and the UK, where students go directly to university, in Israel, both men and women go into the army straight after high school and this teaches strong leadership and improvisational skills.   It is deeply embedded into Israeli culture that failure is acceptable, and that you simply try again and again.”

BlueStar’s TA-BIGITech Israel Global Technology Index was launched in 2013 and was partnered with the Tel Aviv Stock Exchange in 2015 – the first time the exchange partnered with another party for an Israeli index.   The ITEQ Israel Tech ETF was launched in November 2015. The fund is up 16.65 per cent YTD through April 26^th.
 

The agreement was signed by Sherif Samy, chairman of the Egyptian Financial Supervisory Authority, and Richard Teng (pictured), chief executive officer of the ADGM Financial Services Regulatory Authority.
 
The MoU establishes a framework for both authorities to provide mutual assistance, exchange regulatory information and co-operate in the fields of supervision and enforcement matters to uphold high standards in both jurisdictions. The MoU also allows both EFSA and FSRA to discuss and explore join initiatives that enable effective regulation and robust supervision of operators that engage in cross-border operations.
 
Teng says: “We are pleased to strengthen our partnership with Egyptian Financial Supervisory Authority (EFSA). This agreement fosters greater regulatory collaboration and supports continuous development and innovation of our respective financial sectors. We look forward to working closely with EFSA to maintain an efficient, responsive and well-regulated financial environment for our stakeholders and investors.”
 
Samy says: “The signing of the MoU between the EFSA and FSRA signals an important step towards strengthening our regional partnerships and cooperation tools. We are looking forward to further develop the fruitful cooperation that has taken place between our two institutions from the start. We trust that such an agreement will contribute to reinforce a sound and responsive market regulation as well as an enhanced investor protection.”

The agreement was signed in Abu Dhabi by Kenneth Farrugia, chairman of FinanceMalta and Richard Teng, chief executive officer of the Financial Services Regulatory Authority (FSRA) of ADGM. Emmanuel Mallia, Minister for Competitiveness and Digital, Maritime and Services Economy of Malta, was also present to witness the event.
 
The MoU establishes a strategic platform for ADGM and FM to share expertise and pertinent information on banking, financial services and products, securities legislation and regulatory practice in each market. As part of the agreement, ADGM and FM will explore mutually beneficial projects and activities that further develop human capital capabilities and foster greater growth in both financial markets.
 
Teng says: “This MoU marks an important development in our on-going engagement and collaboration with FinanceMalta. By harnessing our expertise and experience, financial institutions and companies can further expand their global footprints through ADGM’s internationally recognised platform. I look forward to the two teams working closely and playing our part in developing the financial services sectors in our respective markets, and supporting our businesses and stakeholders in achieving their growth plans.”
 
Farrugia says: “This MoU marks an important milestone in further strengthening our on-going collaboration with Abu Dhabi Global Market. This MoU will be an important catalyst in our thrust to strengthen the visibility and relevance of Malta as an EU based financial services domicile in the Gulf, and we are extremely delighted with this development. We are looking forward to working closely with ADGM to share our respective expertise in international financial services business with the end objective to foster closer collaboration between the financial services operators in our respective jurisdictions, and facilitate contacts for financial market stakeholders and financial delegations interested in the business potential of ADGM.”