NASDAQ DUBAI TO LAUNCH ‘ FUTURES CONTRACTS’ ON SAUDI FIRMS
THE NASDAQ DUBAI exchange plans to launch ‘futures contracts’ this year on companies listed on the Saudi Arabian stock market, the bourse has announced. The Tadawul stock market index has risen about 11 per cent this year ahead of a potential upgrade to emerging markets status by index firm MSCI in June, and the planned share sale of oil giant Aramco.
“The futures will give investors new hedging tools to take long and short positions on the companies, at a time when international investor interest in the Saudi stock market is increasing rapidly,” the bourse said in a statement.
Futures contracts are agreements to buy or sell shares at an agreed price on a future date. Nasdaq Dubai said it will offer futures contracts on Saudi companies, which are some of the region’s largest businesses active in sectors such as petrochemicals, real estate, banking and transport.