DUBAI – The Dubai Financial Market (DFM) and the Dubai Mercantile Exchange (DME) will jointly explore financial product opportunities following the signing of an agreement, which will appeal to DFM’s broad and diverse investor base of more than 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 this development, Hamed Ali said: “As part of DFM’s efforts to diversify asset classes and product offering, we are delighted to sign this agreement with DME to provide new investment opportunities. to our investors, especially retail investors. The agreement underscores the commitment of both exchanges to identify potential synergies and opportunities, which ultimately strengthens Dubai’s position as a capital markets hub, in line with management’s vision and strategic plan of development of financial markets in Dubai. »
Raid Al-Salami 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.”