DUBAI 16 January 2019: Nasdaq Dubai announced the launch of futures trading on the MSCI UAE equity index on Tuesday, in its latest expansion of the futures market.
In a press statement, the exchange explained that the contracts are designed to appeal to international and regional investors seeking exposure to leading UAE companies.
Robert Ansari, Executive Director – Head of the Middle East of MSCI, rang the market-opening bell at Nasdaq Dubai MarketSite to celebrate the start of trading. The index comprises 11 companies that are among the largest and most liquid in the UAE including DP World, Emaar Properties and First Abu Dhabi Bank.
The introduction of MSCI UAE index futures comes one week after Nasdaq Dubai launched single stock futures trading on 12 Saudi Arabian companies.
The futures on the MSCI UAE index were launched under a licence agreement signed in 2017, under which Nasdaq Dubai can also create futures on other regional MSCI indices.
More than US$11 trillion in assets under management is estimated to be benchmarked to MSCI’s indexes worldwide.
By trading futures investors can make use of leverage to magnify the outcome of their trades and make gains whether the index rises or falls.
Nasdaq Dubai’s derivatives market opened in 2016 and also comprises single stock futures on 29 leading UAE-listed and Saudi-listed companies, as well as futures on Dubai Financial Market’s DFMGI share index and the ADI index of Abu Dhabi Securities Exchange. Nasdaq Dubai is preparing to add a range of further regional equity futures and options.