DFM and DME sign a collaboration agreement to jointly explore diversified financial product opportunities

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Joint collaboration to support Dubai’s strategy to further develop financial markets:

  • Plans to launch a new retail product derived from Oman crude oil futures
  • Hamed Ali: “Leveraging the strengths of both exchanges” to provide investors with new investment opportunities”
  • Raid Al-Salami: “The collaboration with DFM underlines our commitment to supporting the growth of the financial sector and the energy industry in Dubai”

dubai: Dubai Financial Market (DFM) and Dubai Mercantile Exchange (DME) have signed a collaboration agreement that creates a broad framework for extensive collaboration to diversify investment opportunities by jointly exploring financial products that cater to DFM’s large and diverse investor base which exceeds 852,000 investors.

The new initiative stems from the commitment of the two stock exchanges to jointly implement Dubai’s strategy to develop financial markets and stock exchanges through various synchronized efforts.

The agreement was signed by Hamed Ali, CEO of DFM and Nasdaq Dubai, and Raid Al-Salami, Managing Director of DME, in the presence of Ahmad Sharaf, President of DME, during the “Derivatives Day in Dubai ”, the joint forum organized by the Dubai International Financial Center (DIFC) in partnership with DME and CME Group, the world’s leading and most diversified derivatives market.

As the first initiative under the agreement, the two exchanges plan to establish a task force, in line with Dubai’s strategy to further develop financial markets. Collaboration with DME will enable DFM to develop investment opportunities related to the GCC crude oil industry and provide retail investors with the opportunity to be directly involved in the largest and most relevant asset class. of the region. DFM plans to launch a new retail product derived from Oman Crude Oil Futures, DME’s flagship contract that offers investors a unique opportunity to access this important asset class.

Since its launch in 2007, DME has traded approximately 18 billion barrels of Oman crude oil and is considered home to the most transparent sour crude benchmark in the Middle East and Asia. The DME Oman marker price is used by the national oil companies of Oman, Dubai, Saudi Arabia, Kuwait and Bahrain to price more than 5.5 million barrels per day of crude oil from the Middle -East.

Commenting on the development, Hamed Ali, CEO of DFM and Nasdaq Dubai, said: “As part of DFM’s efforts to diversify asset classes and product offering, we are delighted to sign this agreement with DME to present new investment opportunities to our investors, as individual retail investors. The agreement underscores the commitment of both exchanges to identify synergies and potential opportunities, which will ultimately strengthen Dubai’s position as a capital markets hub, in line with the leaders’ vision and strategic development plan. financial markets in Dubai.

Raid Al-Salami, Managing Director of DME, said, “It is a pleasure for us to be here today to sign this collaboration agreement. We believe this partnership between DFM and DME highlights regional strengths and innovative opportunities to explore in Dubai. We are committed to providing the market with new investment solutions and supporting Dubai’s growth as a leading financial center globally.

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About Dubai Financial Market:
The Dubai Financial Market (DFM) was established as a public institution with its own independent legal entity. DFM operates as a secondary market for trading in securities issued by public limited companies, bonds issued by the federal government or one of the local governments and public institutions in the country, units of investment funds and any other financial instrument, local or foreign, which are accepted by the market. DFM commenced operations on March 26, 2000 and became the first Shariah-compliant Islamic stock exchange in the world since 2007. Following its IPO in November 2006, when DFM offered 1.6 billion shares, representing 20% of its paid-up capital of AED 8 billion, DFM became a public joint-stock company and its shares were listed on March 7, 2007 with the trading symbol (DFM). Following the IPO, the Government of Dubai retained the remaining 80% of DFM Company through Borse Dubai Limited. www.dfm.ae

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