Mubasher: Nasdaq Dubai and FTSE Russell have signed a licence agreement to launch derivatives on FTSE Russell’s Saudi Arabia indices in the coming period.
These derivatives are expected to attract regional and international investors and funds, Nasdaq Dubai said in a statement released on Monday.
“Our collaboration with FTSE Russell expands the investment opportunities available to regional and international investors, introduces new product opportunities for regional markets, and complements our product offerings on Saudi Arabia,” Nasdaq Dubai CEO Hamed Ali said.
The Emirati exchange also unveiled plans to launch futures on the FTSE Saudi Arabia Index during February.
“Saudi equities are some of the most heavily traded of all the region’s markets, and the futures contracts are an important additional tool to give regional and international investors efficient access to this dynamic market,” FTSE Russell CEO Waqas Samad stated.
The FTSE Saudi Arabia index includes 46 stocks for firms listed on the Stock Exchange (Tadawul) including the Saudi Basic Industries Corporation (SABIC) and Al Rajhi Bank.
In October 2017, FTSE Russell launched the FTSE Saudi Arabia Inclusion Index Series to encourage international investors to invest in the Saudi bourse.
In March last year, FTSE Russell announced that Saudi Arabia would be assigned a secondary emerging market status within the index’s country classification scheme effective March 2019.
By the end of July, Nasdaq Dubai said that it would launch equity futures for 12 Saudi companies in September, including Kayan Petrochemical Company, Saudi Electricity Company (SEC), and the Saudi Cement Company.
