Dubai: Nasdaq Dubai said on Tuesday it will launch equity futures in 12 Saudi Arabian companies, including Saudi Basic Industries and Alinma Bank, in September.
The 12 companies’ combined market capitalisation stood at 859 billion Saudi riyals (Dh841 billion , $229 billion), representing 43 per cent of the market capitalisation of the Saudi Stock Exchange (Tadawul), the largest exchange in the region.
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 Altayyar Travel Group.
“The launch of these products in Dubai reflects the growing synergies between the capital markets of the GCC,” Hamed Ali, Chief Executive of Nasdaq Dubai, said in a statement.
Nasdaq Dubai’s futures will enable investors to make gains whether share prices are rising or falling. 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, the bourse said in an emailed statement.
The TASI share index of the Tadawul has risen 16 per cent so far this year and traded value on the exchange has reached 475 billion Saudi riyals, up 9 per cent from the same period last year.
MSCI and FTSE Russell announced earlier this year that they will upgrade Saudi Arabia to Emerging Market status.
