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Globally regulated group of brokers Scope Markets has announced the launch of two new CFD products allowing traders to access equity indices in Dubai and Abu Dhabi. This industry-first move enables Scope Markets clients to trade unique instruments – the AD15 for Abu Dhabi and the DXBI for Dubai – that reflect movements in the respective regional stock markets.
The new products aim to provide investors worldwide with easier access to the rapidly growing Gulf Cooperation Council (GCC) economies. Recent market performance underscores the potential appeal of these new instruments: from June to August 2024, while many global markets showed modest gains or remained flat, the Abu Dhabi benchmark index grew by 10% and its Dubai counterpart by more than 15%.
Pavel Spirin, Chief Executive Officer, Scope Markets
Pavel Spirin, Chief Executive Officer at Scope Markets, commented on the launch, "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."
The introduction of these CFDs comes amid growing international interest in UAE markets. According to the Dubai Financial Market (DFM), foreign investors accounted for 47% of trading activity in 2023, with 73% of new investors coming from overseas.
Mitesh Vaghela, Chief Business Officer at Scope Markets, added, "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."
The new equity index products will be available for trading on both long and short positions, with leverage of up to 1:20 offered. These instruments complement over 80 Abu Dhabi and Dubai listed single equity CFDs added to the broker's tradable universe in the past year.
Scope Markets plans to showcase these new products at the upcoming Forex Expo Dubai on October 7th and 8th at the World Trade Centre. The launch of these UAE index CFDs represents a significant step in making Gulf markets more accessible to global investors and highlights the growing importance of Middle Eastern financial markets in the global investment landscape.
