Nasdaq Dubai, FTSE Russell to launch futures on Saudi equity indices

Nasdaq Dubai and FTSE Russell have signed a license agreement for the exchange to launch derivatives on FTSE Russell’s Saudi Arabia equity indices, Nasdaq Dubai said in a statement on Monday.

Later on this month, Nasdaq Dubai will launch futures on FTSE Saudi Arabia Index.

The futures, together with other derivatives to be launched in coming months under the license, will attract global and regional market participants including funds that use FTSE Russell’s indices as benchmarks for investing in Saudi equities, the statement added.

In March 2018, FTSE Russell announced the classification of Saudi Arabia as a Secondary Emerging market within the FTSE Global Equity Index Series.

The FTSE Saudi Arabia Index contains 46 companies listed on the Saudi Stock Exchange (Tadawul) including Saudi Basic Industries Corporation (SABIC) and Al Rajhi Bank, the statement said.

In January 2019, Nasdaq Dubai launched futures trading on the shares of 12 leading Saudi Arabian companies, Argaam earlier reported.

The move came amid rapid expansion of Nasdaq Dubai’s derivatives market. The exchange launched single stock futures on 12 Saudi companies last month.