Nasdaq Dubai bourse to launch future contracts on Saudi firms in 2018

Business Monday 21/May/2018 11:43 AM
By: Times News Service
Nasdaq Dubai bourse to launch future contracts on Saudi firms in 2018

Dubai: The Nasdaq Dubai exchange plans to launch futures contracts this year on companies listed on the Saudi Arabian stock market, the Middle East's largest, the bourse said on Monday.
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.
The futures will begin trading in the third quarter, the bourse added. Futures contracts are agreements to buy or sell shares at an agreed price on a future date.
Nasdaq Dubai said it will offer future contracts on Saudi companies, which are some of the region's largest businesses active in sectors such as petrochemicals, real estate, banking and transport.
Nasdaq Dubai began trading single-stock futures for shares in some of the United Arab Emirates’ biggest companies in late 2016.