The Saudi stock exchange, otherwise known as the Tadawul, is set to buy a 32.6% stake in the Dubai Mercantile Exchange (DME) for an undisclosed sum.
The transaction makes the Tadawul the largest shareholder alongside the Chicago Mercantile Exchange Group. Other shareholders include the Oman Investment Authority and Dubai Holding.
Launched in 2007, the DME is home to the DME Oman crude oil futures contract, which generates the world’s largest amount of physically delivered crude oil and is the third most-important crude oil benchmark globally.
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Tadawul received a combination of new and existing shares and the proceeds of the new shares will be used to fund the DME’s growth.
As a result of the transaction, the DME will be rebranded as the Gulf Mercantile Exchange.
According to a statement, this rebrand is meant to reflect the exchange as a regional commodities hub able to capture global commodities demand.