Nasdaq Dubai has promised that more index-based investment products will be developed in the wake of its recent partnership with index provider FTSE Russell and the launch of the FTSE Russell Saudi Arabia index which will be traded on Nasdaq Dubai.
Speaking at the index’s launch, Nasdaq Dubai chief executive Hamed Ali said that FTSE Russell and Nasdaq Dubai will be “looking at different niches and asset classes” of mutual benefit as well as the respective know-how and intellectual capacity” of the two companies.
“We will be looking at Islamic finance, in terms of asset classes. We will also be looking at other markets, which we don’t want to disclose at this stage, but our focus is within the region,” he added.
Nasdaq Dubai is currently the world’s largest exchange in terms of listed sukuk value.
“Our primary focus will be in how we can enrich the achievement we’ve had when it comes to sukuk and how we can educate the market and give them more tools and utilities that are relevant to sharia products, when it comes to the sukuk,” said Ali.
The other area of focus for 2019 will be on building a derivatives market in the region, said Ali. “Most of the derivatives markets that are prominent today, it took up to five years for them to grow. That takes the right selection of products. We’re following a similar template.”
So far Nasdaq Dubai has launched single stock futures, followed by the tradable indices across the UAE and in Saudi Arabia. Ali has previously mentioned Egypt as a potential future target for another tradeable index launch.
©2019 funds global mena