ALMATY – Kazakh investors will gain direct access to stock markets across six Middle Eastern countries following the opening of a new custody account by the Central Securities Depository (KCSD) with First Abu Dhabi Bank (FAB), one of the region’s major financial institutions.
Photo credit: Shutterstock
The move, announced on April 30, marks a significant step toward integrating Kazakhstan’s financial infrastructure with markets in the Middle East, including the United Arab Emirates, Saudi Arabia, Oman, Kuwait, Bahrain and Egypt, reported the organization’s press service.
Direct market access replaces intermediaries
Through the new account, investors in Kazakhstan will be able to directly settle transactions and hold securities listed on exchanges in these countries.
Previously, access to such instruments required a chain of foreign intermediaries, increasing both transaction costs and processing time. The new structure simplifies operations and improves efficiency.
“Direct connectivity reduces the chain of intermediaries, which for professional market participants means lower transaction costs, and for Kazakh investors – expanded investment opportunities,” said Yedil Medeu, chairman of the management board of KCSD.
Broader investment instruments
The new access opens a wide range of financial instruments to Kazakh investors, including equities, government and corporate bonds, as well as sukuk (Islamic financial certificate), and exchange-traded funds (ETFs).
All securities will be available subject to compliance procedures and case-by-case confirmation.
Transactions will be processed on a T+1 basis, ensuring relatively quick settlement and improved post-trade servicing. In addition, investors will be able to operate in multiple currencies, including regional currencies such as the UAE dirham, Saudi riyal and Kuwaiti dinar, alongside dollar, euro and British pound.
This multi-currency capability is expected to further facilitate cross-border investment and reduce conversion costs.
Strategic positioning as a regional hub
The initiative is part of KCSD’s broader strategy to position Kazakhstan as a regional financial and settlement hub.
The new connectivity is expected to support portfolio diversification for Kazakh investors and strengthen financial ties between Central Asia and the Middle East.
As capital flows diversify across emerging markets, such infrastructure developments could enhance Kazakhstan’s role as a bridge between regional financial systems.
