New move is part of a rapid expansion of Nasdaq Dubai's equity derivatives market covering Saudi Arabia
Nasdaq Dubai on Tuesday launched futures trading on FTSE Russell’s FTSE Saudi Arabia Index, which tracks 46 Saudi Arabia-listed companies.
The futures are designed as investment tools for global and regional investors including funds that use the index as a benchmark for investing in Saudi equities.
The move is part of a rapid expansion of Nasdaq Dubai’s equity derivatives market covering Saudi Arabia, whose Tadawul stock market is the largest and most heavily traded in the Middle East. Nasdaq Dubai launched single stock futures trading on 12 Saudi companies last month.
Waqas Samad, chief executive of FTSE Russell, said: “Nasdaq Dubai’s futures contracts on the FTSE Saudi Arabia Index give investors around the world an attractive new route to access the important Saudi Arabian market.
"The Middle East is a major focus in our plans for growth and we look forward to deepening our collaboration with Nasdaq Dubai in a range of activities across the region.”
Abdul Wahed Al Fahim, chairman of Nasdaq Dubai, added: “The launch of futures on FTSE Russell’s benchmark Saudi index reflects Dubai’s strategy of cooperating with internationally respected entities to promote capital markets excellence and increase synergies between regional markets. We are committed to further increasing the opportunities for investors in order to provide them with a widening variety of tools for enhancing their portfolios.”
Investors can use futures to obtain leverage that magnifies the outcome of their trades, as well as protect their investment positions and make gains from a variety of price movements in the underlying shares.
The trading currency of the futures on the FTSE Saudi Arabia Index is Saudi riyalsand contracts are offered for two consecutive quarters.
Nasdaq Dubai’s derivatives market was launched in 2016 and also offers single stock futures on 17 leading UAE-listed companies as well as 12 Saudi single stock futures, plus futures on the DFMGI index of Dubai Financial Market (DFM), the ADI index of Abu Dhabi Securities Exchange (ADX), and the MSCI United Arab Emirates Equity Index.