Dubai Financial Market launches futures on its general index DFMGI

Rick Steves

“This is in line with our concerted efforts to bring innovative products to market to increase retail and institutional investor participation while increasing the depth and breadth of the market.”

The Dubai Financial Market (DFM) has announced futures contracts on its General Index (DFMGI), with the listing and trading of DFMGI futures commencing on May 29, 2023.

The futures contracts on DFMGI includes the most liquid and largest companies listed on the Dubai Financial Market and are cash-settled contracts that track the underlying price performance of the index.

DFMGI Futures will provide investors with unique investment and hedging opportunities, allow retail investors in DFM to diversify their investment options, and attract more institutional investors to the marketplace.

“DFMGI Futures to increase retail and institutional investor participation”

Hamed Ali, Chief Executive Officer of DFM, said: “The launch of DFMGI Future is further evidence of our commitment to diversify products and provide investors with unique investment and hedging opportunities. This is in line with our concerted efforts to bring innovative products to market to increase retail and institutional investor participation while increasing the depth and breadth of the market.”

The DFMGI tracks key sectors such as Financials, Industrials, Real Estate, Utilities, Communication Services, Transportation, among others. It is one of the best-performing indices in the world comprising DFM’s largest and most liquid stocks, including the recently successfully listed Empower, Dewa, Salik, and others, as well as the region’s leading blue-chip companies such as Emaar and Aramex. The index has increased in value by 4.4% last year, followed by a strong growth of 6.14% from the beginning of 2023 till May 2023.

The DFMGI futures closely track the underlying price performance of the DFM General Index, which in turn provides a benchmark for the overall performance of the Exchange.

Trading futures contracts on the DFMGI provides strong diversification and hedging opportunities for both retail and institutional investors and drive more professional investors’ participation in the marketplace. The initiative is DFM’s latest attempt to internationalize Dubai’s financial markets and promote market liquidity and depth.

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