DUBAI — The Dubai Financial Market (DFM) has unveiled its latest initiative with the introduction of futures contracts on its General Index (DFMGI), encompassing the largest and most liquid companies listed on the exchange. The launch of DFMGI futures, which commenced today, offers investors an opportunity to access one of the world’s top-performing indices.
Investors participating in trading futures contracts on the DFMGI will gain exposure to a diverse range of stocks, including renowned entities like Empower, Dewa, Salik, as well as prominent blue-chip companies like Emaar and Aramex. By providing access to this selection of high-performing stocks, the DFMGI futures present strong diversification and hedging opportunities for both retail and institutional investors, while driving increased participation from professional investors.
The introduction of DFMGI futures marks a significant step in the DFM’s efforts to globalize Dubai’s financial markets and enhance market liquidity and depth. These innovative futures contracts enable investors to profit from both upward and downward movements in the index, leveraging the potential gains through the use of leverage.
Hamed Ali, CEO of DFM, emphasized the commitment to diversify products and offer unique investment and hedging opportunities to investors. The launch of DFMGI futures aligns with the DFM’s strategy to introduce innovative products that attract participation from retail and institutional investors, ultimately expanding and strengthening the market.
The DFMGI has demonstrated robust performance, posting a growth of 4.4% last year and a further surge of 6.14% from the beginning of 2023 until May 2023. With the futures contracts closely tracking the underlying price performance of the DFM General Index, they serve as a reliable benchmark for the overall performance of the exchange. These futures will prove valuable for investors seeking effective hedging strategies against market volatility and making profitable trades.
The DFMGI covers key sectors, including Financials, Industrials, Real Estate, Utilities, Communication Services, and Transportation, among others. By encompassing these sectors, the index provides comprehensive insight into the performance of Dubai’s economy and serves as a reflection of the overall market trends.
The introduction of futures contracts on the DFMGI is expected to generate significant interest from global investors, further positioning Dubai as an attractive destination for investment in the financial sector. As the DFM continues to innovate and diversify its offerings, it contributes to the advancement of Dubai’s financial landscape and reinforces the city’s status as a global hub for financial services and investment opportunities.
Disclaimer: This article is not an investment recommendation. Readers are advised to conduct thorough research and seek professional advice before making any investment decisions.
