Nasdaq Dubai to launch equity futures on 12 Saudi firms in September

Nasdaq Dubai on Tuesday said it will launch equity futures on 12 Saudi Arabian companies in September.

The companies are: Saudi Basic Industries Corporation (SABIC); Al Rajhi Bank; Alinma Bank; Almarai Company; Dar Al Arkan Real Estate Development Company; Etihad Etisalat Company; Rabigh Refining and Petrochemical Company; Saudi Arabian Mining Company; Saudi Cement Company; Saudi Electricity Company; Saudi Kayan Petrochemical Company; and Al Tayyar Travel Group.

The combined market capitalization of the 12 Saudi firms stands at SAR 859 billion ($229 billion), representing 43 percent of the market capitalization of the Saudi Stock Exchange (Tadawul), Nasdaq Dubai said in a statement.

Nasdaq Dubai’s futures will enable investors to make gains whether share prices are rising or falling, the statement said. 

This will stimulate further investor interest in the Saudi capital markets.

The single stock futures will be traded on Nasdaq Dubai in Saudi riyals (SAR), which is the currency of the underlying shares.

“We are delighted to provide investors with new hedging and leverage tools that support their ability to play an active role in the Saudi equity market through trading our futures,” Hamed Ali, chief executive of Nasdaq Dubai, said in the statement.

“The launch of these products in Dubai reflects the growing synergies between the capital markets of the GCC,” he added.

Nasdaq Dubai launched UAE futures trading in September 2016 with single stock futures on seven UAE-listed companies.

The exchange announced in May that it would add Saudi single futures, but did not name the companies at the time.