Media ININ Economy We Trust
MEDIA IN, Dubai, May 21, 2018 (WAM)
NASDAQ Dubai is poised to launch futures contracts on leading Saudi listed companies that will give investors new hedging tools to take buying and selling positions for corporate stocks at a time when international investors are increasingly interested in the Saudi stock market.
Saudi companies will also be among the largest companies active in the Middle East in sectors including petrochemicals, real estate, banking and transport. Trading will begin on NASDAQ Dubai during the third quarter of this year at a date to be announced later.
“The framework we have set for trading and reducing Saudi futures is based on extensive consultations with regional and international market participants, including brokerage firms and potential investors,” said Hamed Ali, CEO of NASDAQ Dubai, the Middle East’s international exchange. “Welcome investors with a new tool to take advantage of Opportunities in the Kingdom’s active equity markets will provide further momentum for investment in Saudi capital markets and the drive to develop new bonds with market participants.
Tadawul, the Tadawul All-Share Index, has risen 10 per cent this year and the total market capitalization of the stock exchange has risen by 1.9 trillion Saudi riyals ($ 507 billion) and has increased 11 per cent this year to SAR 399. FTSE Russell said in March that it would include the Saudi market to the Emerging Markets Index.
Nasdaq Dubai launched futures trading on UAE listed companies in September 2016. Individual futures contracts were launched on seven listed companies in the UAE and increased to 17 in February 2018.
