Middle East ETF News Older than One Year
79 per cent of brokers and fund managers say equity derivatives use will grow in 2010
April 6, 2010--The Middle East equity derivatives market is likely to expand in 2010 compared to last year’s levels, according to 79 per cent of fund managers and brokers polled by NASDAQ Dubai.
A total of 87 per cent described equity derivatives as useful tools for managing risk, while 72 per cent said their organisation was interested in learning more about the uses and benefits of equity derivatives.
The survey received responses from representatives of 40 fund managers and brokerage firms who attended the FOW Derivatives World Middle East conference in Dubai on March 16.
Jeff Singer, Chief Executive of NASDAQ Dubai, said: “The survey shows that investors are poised to make increasing use of the Middle East equity derivatives market, which is still in its infancy and has potential for rapid growth.
“NASDAQ Dubai will continue to drive the development of the market forward, by expanding its product range and by educating finance professionals and the public about the advantages that equity derivatives offer.”
NASDAQ Dubai launched the UAE’s only equity derivatives platform in November 2008. Trading volumes have expanded from 90 in January 2009 to several thousand every week by the end of the year.
The market currently consists of futures over 21 individual UAE stocks and over the FTSE NASDAQ Dubai UAE 20 index, which is well correlated with equity markets across the MENA region and offers significant hedging and investment possibilities.
Useful additions to NASDAQ Dubai’s equity derivatives market would include futures listed on other GCC individual stocks and equity indices, as well as equity options, respondents to the survey said.
A total of 93% of respondents said that NASDAQ Dubai’s trading model provides useful protection against the risk of default by a counterparty, which can affect over-the-counter trades. NASDAQ Dubai operates a central clearing house which eliminates such risk.
NASDAQ Dubai Academy, the exchange’s training arm, will run two one-day training courses that explain the benefits of equity derivatives and how to trade them. The first course, on April 13, is suitable for the general public and the second, on April 14, is aimed at finance professionals. More information is available at www.nasdaqdubai.com/academy
Source: NASDAQ Dubai
Islamic finance industry faces need for innovation, including its own derivative products
April 6, 2010--A combined use of securitisation and derivatives offers considerable scope for reducing the risk exposures of Islamic financial institutions (IFIs) and thus improving their overall creditworthiness, Moody's Investors Service says in a new Special Comment.
However, the Islamic finance industry needs to develop its own innovation phase and not imitate conventional derivative instruments in order for IFIs to maintain their special status and Shari'ah-compliant approach, Moody's report explains.
Source: AME Info
Abu Dhabi Investment House posts $5m profit in 2009
April 6, 2010--Abu Dhabi Investment House has posted Dhs17m ($5m) in net profit for 2009. Total income for 2009 was at Dhs207m ($56m) achieving net profit of Dhs17m ($5m).
Total assets rose by 4% compared to year 2008 to reach Dhs1599m ($435m), Adih said.
Source: AME Info
ETFs to expand UAE investors' base
April 5, 2010--The recent launch of the first exchange traded funds (ETFs) in the UAE will open up a broad investment horizon to retail as well as institutional investors from the region and abroad, said a top official of BlackRock, a global asset management and investment management firm.
Deborah Fuhr, Managing Director and global Head of ETF research and implementation strategy, BlackRock, London, said: "ETFs are a very useful tool to implement exposure to a diversified asset class like equity, fixed income and commodities very quickly and anytime during the day.
"In the UAE, for instance, the ETF will give investors an easy way to get exposure to securities that are listed on both the Abu Dhabi Securities ExchangeAbu Dhabi Securities Exchange and Dubai Financial MarketDubai Financial Market in a single product."
Asked what value will ETF bring to the UAE's capital market, especially in the current volatile conditions, she said the ETF would bring the benefit of getting a diversified exposure.
Source: Zawya
Index Data Monthly Report: MENA Edition
April 4, 2010--Index Data Monthly Report: MENA Edition from Dow Jones Indexes.
Source: Dow Jones Indexes
UAE Ministry of Finance studies project to establish Federal Credit Bureau
April 4, 2010--The UAE Ministry of Finance (MoF) has initiated a study to create a Federal Credit Bureau that will be a center for individual and corporate credit information services at the level of the United Arab Emirates government.
This move is based on the guidance of HH Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs and is another step in MoF's drive to promote transparency in financial policy-making.
Source: AME Info
Dubai Gold And Commodities Exchange Weekly Views -April 4, 2010
April 5, 2010--Commodities Overview
Prices for crude oil, gold, and silver gained last week as expectations of higher prices based on positive fundamentals drew increased buying interest from investors. This week prices may head lower.
Although fundamentals for these commodities are supportive of prices overall, they may not be enough to push prices much higher, at least this week. Investor price targets may be hit and profit-taking could easily push crude oil, gold, and silver prices to lows seen just a couple of weeks ago. If prices cannot forcefully break above technical resistance levels, selling also may be sparked. While demand for crude oil is improving it may not provide a strong upward price signal over the next few weeks.
Currencies Overview
The U.S. dollar was volatile last week, trending lower overall. This week the dollar is forecast to strengthen against most major currencies. Economic recovery in the United States has been occurring at a better pace compared to many other advanced nations. Macroeconomic data released over the past several weeks has been signaling slow but steady growth in the United States. Consumer confidence levels have improved from the low levels of last year. There have been increased fund flows from Japan and Europe into the United States in search for higher yields. That said, the current recovery in the United States is at a nascent stage. Longer term sustainability of growth continues to be a concern. The U.S. government has a massive fiscal deficit.
Source: Source: Dubai Gold And Commodities Exchange (DGCX)
Saudi Arabia to invest SR200bn in water projects
April 1, 2010--The chief executive of Saudi Arabia's National Water Co, Loay Al Musallam, has said that the kingdom plans to invest SR200bn in water projects over the coming 15 years, 70% of which will be for sewage and waste water treatment projects, Reuters has reported.
'We currently have a sewage project in Riyadh and Jeddah with an investment of SR18bn and we are looking to expand these projects to the rest of the kingdom,' he said. The company controls all of the kingdom's groundwater wells and sewage and desalination plants.
Source: AME Info
Foreign investors purchase Dhs1.959bn worth of shares on DFM during the last week, and sold Dhs1.959bn
April 1, 2010--Dubai Financial Market announced that the value of shares bought by foreign investors, or non-UAE nationals, during last week (28 Mar. - 1 April.) reached Dhs1.959bn comprising 43.5% of the total value of stocks traded during the period.
The value of stocks sold by foreign investors during the same period reached Dhs1.959bn comprising 43.5% of the total value of stocks traded during the period. Net foreign investment on the market reached Dhs52.2 thousand during the same period, as aggregate sell.
Source: AME Info
Saudi 'could boost output' by 4.5m bpd
April 1, 2010--Saudi Arabian oil minister Ali Al- Naimi has said that once demand recovers from recession, the kingdom could boost output by as much as 4.5 million barrels-a day, Bloomberg has reported.
The kingdom is waiting for usage to rise after increasing capacity to 12 million barrels a day, he said. "Demand is gradually growing right now," Al-Naimi said.
Source: AME Info
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