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00:00 Saudi Arabia is acquiring a share in Dubai Mercantile Exchange, which is the Dubai Energy
00:07 Fund.
00:08 The Dubai Energy Fund was established in 2007 and it is mainly trading futures for Kham Oman,
00:14 its main headquarter in the United Arab Emirates.
00:17 Kham Oman is the main indicator of oil prices in more than five of the most important oil
00:23 companies in the Gulf region.
00:26 The acquisition deal is for the acquisition of 32.6% of the Dubai Energy Fund, the value
00:33 is $28.5 million.
00:34 The trading talks said that the deal will be financed through the acquisition of bank
00:41 loans in accordance with Islamic law.
00:43 Therefore, after the completion of this trading deal, the largest shareholder in DME will
00:49 be acquired by CME, which is the Chicago Mercantile Exchange, with the knowledge that the other
00:56 shareholders are Dubai Capital and the Omani Investment System.
01:01 After this acquisition, the name of the Dubai Energy Fund will be changed to become the
01:06 Gulf Fund for commodity in general.
01:08 The question now is why is the trading in this direction?
01:12 Trading wants to diversify its resources.
01:15 Secondly, it wants to benefit from the fact that this stock and its presence in this area
01:22 gives it a strategic importance because it is very close to the production centers and
01:28 the leading financial centers.
01:30 We can see the addition of new products related to minerals and agricultural products or even
01:36 the issuance of derivatives and products related to the financial contracts of investors.
01:42 This will facilitate trading to have a wider and more inclusive portfolio.
01:49 Today, within this framework, we must remind you that the Agile contract or the Futures
01:57 contract of Oman is the third most important oil prices indicators worldwide.
02:02 If we follow the liquidity that was for these Futures from the establishment of the stock
02:08 in the past two years, we can see that the number of shares that were sold was 3 billion
02:14 per mil and 20 billion per mil were traded.
02:17 If we look at the size of the sales over the past two years, these numbers were generally
02:22 16% higher.
02:23 But because trading will enter the side and become a partner and investor in the Dubai
02:28 Energy Fund, this means that it will suffer from a conflict of interest or a conflict
02:33 of interest if it offers products related to Saudi oil.
02:39 Therefore, trading said that no trading, buying or selling of Saudi oil contracts will be
02:45 carried out and no indicators will be issued to track the performance of Saudi oil, because
02:51 this will basically expose it to a conflict of interest, since it has a large share in
02:58 the Dubai Energy Fund or what will later be called the Gulf Stock Exchange.
03:05 Of course, the stock will remain in the United Arab Emirates under the Dubai Authority for
03:11 Financial Services, and this is a matter that has been confirmed by trading, and that is
03:17 to avoid conflicts of interest.
03:20 al-Masalih.