Nasdaq Dubai launches futures trading for 12 Saudi companies

Photo courtesy of Nasdaq Dubai

Nasdaq Dubai today launched futures trading on the shares of 12 Saudi Arabian companies, with a combined market capitalization of SAR 794 billion ($212 billion), according to a bourse statement.

These companies include Saudi Basic Industries Corporation (SABIC); Al Rajhi Bank; Alinma Bank; Almarai Company; Dar Al Arkan Real Estate Development Company; Etihad Etisalat Company (Mobily); Rabigh Refining and Petrochemical Company (Petro Rabigh); Saudi Arabian Mining Company (Maaden); Saudi Cement Company; Saudi Electricity Company (SEC); Saudi Kayan Petrochemical Company; and Altayyar Travel Group.

Nasdaq Dubai first announced its plans to launch Saudi equity futures in May 2018. The futures are traded on Nasdaq Dubai in Saudi riyals, which is the currency of the underlying shares.

The launch ceremony was attended by executives of brokerage firms through which investors can trade futures on Nasdaq Dubai including Integrated Securities, Brokerage House Securities, Menacorp, Al Ramz Capital, Al Safwa Mubasher, Daman Securities, EFG-Hermes UAE, Arqaam Capital and SICO UAE, as well as by Mubasher Financial Services and Shuaa Capital.

Nasdaq Dubai first announced its plans to launch Saudi equity futures in May 2018. The futures are traded on Nasdaq Dubai in Saudi riyals (SAR), which is the currency of the underlying shares.  

The exchange launched UAE futures trading in 2016 with single stock futures on seven companies. With more UAE companies added since then plus today’s addition of the Saudi contracts, Nasdaq Dubai now offers single stock futures on a total of 29 leading regional companies.

Last year, the exchange also added futures on Dubai Financial Market and Abu Dhabi Securities Exchange. It will add futures on MSCI’s UAE share index later this month.

More market participants are preparing to join Nasdaq Dubai’s derivatives market as it expands. Further product additions will include futures and options based on stocks and indices of various exchanges in the MENA region.