Abu Dhabi Exchange Removes Daily Price Limits on ETFs

The Abu Dhabi Securities Exchange has removed daily price movement limits on exchange-traded funds listed on its market, in a change designed to widen investor choice and deepen access to these products. Daily price limits, which cap how far a security can move in a single session, are intended to curb extreme volatility, but they can also constrain how closely an ETF's traded price tracks the value of its underlying assets, particularly when those assets move sharply. By lifting the limits for ETFs, the exchange aims to allow prices to adjust more freely to reflect fair value, potentially improving liquidity and making the instruments more attractive to both local and international investors. The step forms part of a broader push across the UAE's capital markets to modernise trading infrastructure, broaden the range of available investment products and align local practices with international standards. It comes amid wider efforts to develop the country's financial ecosystem and reinforce its position as a regional hub, giving retail and institutional investors more flexible tools to gain diversified exposure to equities and other asset classes.