The 12 companies are some of the Middle East’s largest businesses, active in real estate, petrochemicals as well as banking and transport.
Nasdaq Dubai has announced the names of 12 Saudi Arabian companies on which the exchange will launch equity futures in September 2018, according to local newswire WAM.
The companies have combined market capitalisation is SAR 859 billion ($229 billion), representing 43 per cent of the market capitalisation of the Tadawul.
Nasdaq Dubai’s futures will enable investors to make gains whether share prices are rising or falling and the single stock futures will be traded on Nasdaq Dubai in Saudi riyals, which is the currency of the underlying shares.
The companies are Saudi Basic Industries Corporation, Al Rajhi Bank, Alinma Bank as well as Almarai Company, Dar Al Arkan Real Estate Development Company and Etihad Etisalat Company.
Additionally, the companies also include Rabigh Refining and Petrochemical Company, Saudi Arabian Mining Company, Saudi Cement Company as well as Saudi Electricity Company; Saudi Kayan Petrochemical Company and Altayyar Travel Group.
Hamed Ali, Chief Executive of Nasdaq Dubai, said that the launch of these products in Dubai reflects the growing synergies between the capital markets of the GCC.
The Tadawul All Share Index, TASI, rose 16 per cent so this year and the traded value on the exchange reached SAR 475 billion, up nine per cent from the same period last year.