Scope Markets has launched two new CFD products for trading indices in both Dubai and Abu Dhabi in what is seen as being an industry-first.
The FX/CFD broker is thus providing access to the prices reflecting movements in the underlying regional stock markets, the AD15 for Abu Dhabi and the DXBI for Dubai.
According to Dubai Financial Market (DFM), foreign investors accounted for 47% of trading activity in 2023, whilst 73% of new investors were from overseas.
“It’s no secret that the GCC economies are growing rapidly”
The launch of equity index CFDs for the AD15 and the DXBI come on the heels of struggling global equity markets over the summer. The Dow 30 added around 5% from the start of June to the end of August and the FTSE-100 was little changed.
In the meantime, the Abu Dhabi benchmark index grew by 10% whilst the Dubai equivalent saw its value grow by more than 15%.
There is also frequent oversubscription of new equity offers in the region, with the Parkin IPO being 165 times oversubscribed last March.
Pavel Spirin, Chief Executive Officer at Scope Markets, commented: “We are genuinely excited to be offering clients the ability to gain exposure to both the Dubai and Abu Dhabi equity indices via a CFD. It’s no secret that the GCC economies are growing rapidly, fuelled in part by more companies listing on the relevant regional markets. We know that investors from across the world want an easy way to add UAE exposure to their portfolios – these new products deliver that reality.”
Mitesh Vaghela, Chief Business Officer at Scope Markets, said: “At Scope Markets we have now developed these proprietary instruments which we believe provide a genuine market differentiator for us as a brokerage. We know the demand for investing in both Dubai and Abu Dhabi is there so we will use feedback from these products to see how we can further refine the offering and also look at expanding the product suite to allow access into other exchanges across the GCC.”
AD15 and DXBI offered with leverage up to 1:20
Scope Markets allows its new equity index products to be traded on both a long and short basis, with leverage of up to 1:20 offered.
The CFD broker previously added more than 80 Abu Dhabi and Dubai-listed single equity CFDs which have been added to the broker’s tradable universe over the last twelve months.
The news comes ahead of the Forex Expo Dubai, which will take place next week in the World Trade Centre on October 7th and 8th. Scope Markets will be represented at stand 15 at the expo.
