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The Dubai Financial Market (DFM) has started the trading of Oman crude oil futures contracts, which is expected to provide investors the opportunity to tap into the crude oil sector for the first time.
The Micro Oman Crude Oil Contract was launched on Wednesday, during a market opening bell ringing ceremony in the presence of officials from DFM, Nasdaq Dubai and Dubai Mercantile Exchange (DME).
The new futures monthly contract tracks the performance of DME’s Oman Crude Oil Futures and is traded in the US dollar and cash-settled as per the closing price.
“[The launch] is a new milestone for DMF as it brings an entirely new asset class to the market, enabling our investors, in particular retail investors, to participate in the opportunities of one of the key economic sectors in the region,” said Hamed Ali, CEO of DFM and Nasdaq Dubai.
Trading of the new contract is supported by market makers xCube, Al Ramz Capital and BHM Capital.
Dubai had recently set out plans, which include listing of state-owned companies, to boost trading volumes on its stock market to 3 trillion dirhams. Last April, the Dubai Electricity and Water Authority (DEWA) made its debut on the local bourse after an initial public offering that raised more than 22 billion dirhams.
(Reporting by Cleofe Maceda; editing by Seban Scaria)
