“Dubai Financial” and “Dubai Energy” are studying the launch of a financial product derived from the future contracts of “Oman Oil Crude”
The Dubai Financial Market and the Dubai Mercantile Exchange signed a cooperation agreement that provides a general framework aimed at diversifying investment opportunities through joint development of new financial products that meet the needs of the huge and diversified investor base in the Dubai Financial Market, which exceeds 852,000 investors.
A statement said that the new initiative reflects the firm commitment of the two exchanges to coordinate efforts to implement the strategy to develop financial markets in Dubai.
sign the agreement
The agreement was signed by the CEO of the Dubai Financial Market and Nasdaq Dubai, Hamed Ali, and the Director General of the Dubai Mercantile Exchange, Raed Al Salami, in the presence of Ahmed Sharaf, Chairman of the Board of Directors of the Dubai Energy Inch, during the activities of “Derivatives Day in Dubai”, the joint forum organized by The Dubai International Financial Center in partnership with the Dubai Mercantile Exchange and the “CME” group, which is the world's most diversified derivatives market.
retail product
According to the statement, the two exchanges plan to establish a joint working group to coordinate their efforts and be inspired by the main strategic goals in Dubai, and focus on the continuous development of financial markets by developing new investment opportunities that benefit from the crude oil sector in the Gulf Cooperation Council countries, and enable individual investors to invest directly in the largest categories The assets most closely related to the region.
Accordingly, DFM plans to launch a retail product derived from Oman Oil Crude futures contract, the main futures contract of the DME, which will provide investors with a unique opportunity to invest in this important asset class.
"Oman Crude Oil"
According to the statement, since its inception in 2007, the Dubai Energy Exchange has witnessed the trading of about 18 billion barrels of “Oman crude oil”, and the exchange provides, through the trading of these contracts, the most transparent standard for crude oil prices in the Middle East and Asia, as it is used by national oil companies. In Oman, Dubai, Saudi Arabia, Kuwait and Bahrain, to price more than 5.5 million barrels per day of crude oil in the Middle East.
Diversification of asset classes
Hamed Ali, CEO of the Dubai Financial Market and Nasdaq Dubai, said that the agreement with the DME comes within the framework of the Dubai Financial Market's efforts to diversify the classes of assets and financial products, providing new investment opportunities for our investors in general and individual investors in particular.
innovative opportunities
In turn, Director General of the DME, Raed Al Salami, said that the partnership between the Dubai Financial Market and the DME highlights the strengths and innovative opportunities offered by the region's markets, which can be explored from Dubai.
"We are committed to working together to provide new investment solutions that support Dubai's growth as a leading global financial centre," he added.
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