The Dubai Financial Market (DFM) and Dubai Mercantile Exchange (DME) have signed a collaboration agreement that creates a broad framework for extensive collaboration to diversify investment opportunities.
The deal will enable joint exploration of financial products that cater to DFM’s large and diversified investors base, which exceeds 852,000 investors.
The collaboration with DME will enable DFM to develop investments opportunities related to the GCC crude oil industry and offer retail investors the opportunity to be directly involved in the region’s biggest and most relevant asset class.
DFM plans to launch a new retail product derived from the Oman Crude Oil Futures, DME’s flagship contract that provides investors with the one-of-a-kind opportunity to access this significant asset class.
Since its launch in 2007, DME has traded approximately 18 billion barrels of Oman crude oil and is considered home for the most transparent sour crude benchmark in the Middle East and Asia.
The DME Oman marker price is used by national oil companies of Oman, Dubai, Saudi Arabia, Kuwait and Bahrain to price more than 5.5 million barrels per day of Middle East crude oil.
The two exchanges are also planning to create a working group, following Dubai’s strategy to further develop financial markets.
The agreement was signed by the CEO of DFM and Nasdaq Dubai, Hamed Ali, and the managing director of DME, Raid Al-Salami, in the presence of the chairman of DME, Ahmad Sharaf, during the ‘Derivatives Day in Dubai’ – a joint forum organised by the Dubai International Financial Centre (DIFC) in partnership with the DME and CME Group, the world’s leading and most diverse derivatives marketplace.
Commenting on the agreement, Hamed Ali said: “As part of DFM’s efforts to diversify asset classes and product offering, we are delighted to sign this agreement with DME to introduce new investment opportunities to our investors, in particular retail investors.
“The agreement underlines the two exchanges’ commitment to identify synergies and potential opportunities, which ultimately strengthens Dubai’s position as a capital markets hub, in line with the leadership’s vision and the strategic plan to develop financial markets in Dubai.”
The managing director of DME, Raid Al-Salami, said: “We believe this partnership between DFM and DME highlights the regional strengths and innovative opportunities to be explored within Dubai. We are committed to providing the market with new investments solutions and support the growth of Dubai as a leading financial hub globally.”
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