Traders at the Dubai Financial Market (DFM)
DFM is planning to offer investment opportunities beyond stocks. The alliance with Dubai Mercantile Exchange is part of that move. Image Credit: Virendra Saklani/Gulf News

Dubai: The Dubai Financial Market will jointly create new financial products linked to the oil industry in tandem with Dubai Mercantile Exchange, thus diversifying opportunities for its 852,000 strong investor base.

The collaboration with DME will enable DFM to develop investments related to the GCC crude oil industry and offer retail investors the opportunity to be directly involved in the “biggest and most relevant asset class” in the region.

As a first step, the two exchanges will create a working group, following Dubai’s strategy to further develop financial markets.

DFM plans to launch a new retail product derived from Oman Crude Oil Futures, DME’s flagship contract that provides investors with unique opportunity to access this significant asset class.

Since its launch in 2007, DME has traded around 18 billion barrels of Oman crude oil. It is considered the base for 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 Dubai, Oman, Saudi Arabia, Kuwait and Bahrain to price more than 5.5 million barrels per day of Middle East crude oil.

We are delighted to sign this agreement with DME to introduce new investment opportunities to our investors, in particular retail investors. The agreement underlines the two exchanges’ commitment to identifying synergies and potential opportunities, which ultimately strengthens Dubai’s position as a capital markets hub.

- Hamed Ali, CEO of DFM and Nasdaq Dubai