TAIPEI, May 13, 2025 /PRNewswire/ -- Taiwan Stock Exchange (TWSE) Chairman and CEO Sherman Lin led a delegation to the United Arab Emirates from May 4 to 10 to expand engagement with Middle Eastern markets and showcase Taiwan's capital market strengths. The delegation met with local exchanges, sovereign wealth funds, asset managers, and custodian banks, culminating in the signing of a Memorandum of Understanding (MoU) with the Dubai Financial Market.

The MoU focuses on cross-border product listings, joint market promotion, and information exchange. Discussions also covered potential dual-listed ETFs and co-developed financial products.

"The Middle East is strategically important to Taiwan's capital market internationalization," said Lin. "We aim to foster deeper cooperation and broader investor engagement."

The TWSE also held follow-up meetings with the Abu Dhabi Securities Exchange (ADX), building on a cooperation MoU signed in 2007. A visit to ADX last October extended dialogue on cross-border ETF listings and other collaborative opportunities.

Capital Market Summit and strategic dialogue

During the visit, Lin spoke at the Capital Market Summit 2025, hosted by the Dubai Exchange. He joined a panel titled "Bridging Borders: Cross-Border Capital Flows" alongside representatives from the Dubai Financial Market, Bahrain Bourse, and Nasdaq, where he addressed the regulatory challenges surrounding cross-border capital movement, its potential benefits, and the TWSE's ongoing efforts to facilitate cross-market initiatives.

Lin underscored how Taiwan and Middle Eastern markets are highly complementary. "Cross-border financial products and capital engagement offer long-term, mutually beneficial opportunities for both sides," Lin emphasized. He added that ETF cross-listings have emerged as an effective model, with a Taiwan-Japan product collaboration expected to launch later this year.

This marked Lin's second visit to the region, following an outreach in October 2024, and reflects the TWSE's continued commitment to expanding international investor engagement.

Highlighting Taiwan's market strengths

In addition to meeting the region's two major stock exchanges, the delegation met with over a dozen local financial institutions and sovereign wealth funds to promote Taiwan's market. Chairman Lin highlighted Taiwan's central role in the global AI supply chain, with its semiconductor sector driving a surge in market cap and trading volume in 2024.

He also noted Taiwan's resilience during global equity selloffs in April 2025. While most markets declined due to renewed tariff concerns, Taiwan's benchmark index was among the first to rebound—demonstrating market resilience and investor confidence. Lin also welcomed input from foreign investors on improving Taiwan's market mechanisms.

Foreign investment momentum

Foreign investors hold over 40% of outstanding shares and contribute more than 30% of daily trading. Despite global volatility in 2025, the TWSE index has gained 20% since early April, with average daily turnover exceeding TWD 300 billion ($9.8 billion).

Through this outreach, the TWSE aims to strengthen market connectivity, attract capital and product flows, and enhance Taiwan's global capital market presence.

About TWSE

The Taiwan Stock Exchange (the "TWSE") started operations on February 9, 1962. The TWSE is responsible for operating and advancing the Taiwan securities market. The TWSE's primary business operations include listing, trading, settlement, and surveillance. These comprise listing promotion and review, post-listing supervision and corporate governance, maintaining market trading and order, securities firms' services, investor protection, clearing and settlement operations, safeguarding against market defaults and the monitoring of illegal transactions. The Exchange provides comprehensive services to the securities market.