The Dubai Financial Market has started trading equity futures contracts on individual stocks of the Dubai Electricity and Water Authority (Dewa) and Bahrain’s GFH Financial Group.
The move comes as part of the bourse plans to diversify its product offering, attract new investors and boost market liquidity.
Earlier this month, Oman crude oil futures began trading on the emirate’s stock market, making it accessible to a large number of investors.
“The new launch brings the number of companies that the DFM provides futures’ contracts on their individual stocks to 12 listed companies with tenures of one, two and three months,” the bourse said on Monday.
Dewa, the first government entity to list on the DFM, operates as a vertically integrated multi-utility, with business activities including power generation, transmission and distribution, water desalination and district cooling.
It was listed in April this year after it raised Dh22.41 billion ($6bn) in an oversubscribed sale of shares that was the largest public float in the Middle East and Europe since Saudi Aramco went public in 2019.
Dewa has a market value of more than $35bn and is the largest listed company on the exchange.
GFH has more than $15bn of assets and funds under management including a global portfolio of investments in logistics, health care, education and technology in the Mena region, Europe and North America.
The investment bank is currently listed in Dubai, Abu Dhabi, Bahrain and Kuwait. It listed its shares on the Abu Dhabi Securities Exchange last month.
Dubai revealed plans to list 10 state-owned companies as part of its strategy to increase the size of its capital market and attract foreign investment.
Currently dominated by financial services and property companies, the government aims to further diversify the sectors on the DFM.
Dubai approved a market maker fund worth Dh2bn last year to encourage listings from sectors such as energy, logistics and retail.
The emirate also plans to list 12.5 per cent of the Tecom Group, the operator of business districts that are home to more than 7,800 companies, on the DFM next month.