Dubai: Nasdaq Dubai said on Wednesday it will launch trading in futures on the MSCI United Arab Emirates (UAE) equities index on January 15.
This opens a new route for investors to gain exposure to the performance of UAE companies.The index is a benchmark that is widely watched by investors around the world.
It currently comprises 11 constituent companies that are among the largest and most liquid in the UAE including DP World, Emaar Properties and First Abu Dhabi Bank.
By trading in futures on the index, investors can hedge their positions, make use of leverage to magnify the outcome of their trades, and make gains whether the index is rising or falling.
“It will encourage further participation from international and regional funds and other investors, including individuals, who are looking for new and attractive opportunities to increase their exposure to the UAE’s investment landscape,” Hamed Ali, chief executive of Nasdaq Dubai, said in a statement.