Maktoum bin Mohammed: We aim to consolidate the presence of Dubai stock exchanges regionally and globally

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His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, said: The Dubai government has provided all necessary means of support for the growth of the financial markets operating in it, and within an integrated partnership relationship during which the emirate was keen to continue developing the legislative structure. and infrastructure, enabling these stock exchanges to consolidate their presence at the regional and global levels, as well as enhance their presence as a strong and effective partner in the market. This came during his meeting with the Board of Directors of the Dubai Energy Exchange.

His Highness, Deputy Ruler of Dubai added: “The Dubai Energy Exchange has gained the confidence of the strategic partners and has established its position as an approved reference in the energy markets, and the Dubai Government’s support for it will continue.”

His Highness praised the achievements of the Dubai Stock Exchange during the last stage, pointing out that the exchange’s successful strategy contributed to the unprecedented growth of trading volume, and enhanced its ability to benefit from the steady growth of crude oil trading in the Middle East and Asia.

Big chances

During the meeting, His Highness reviewed the developments in the sector at the regional and global levels, especially in light of the rapid changes witnessed by the energy market and the great opportunities it brought for growth.

The meeting was attended by Ahmed Sharaf, Chairman of the Board of Directors of the Dubai Mercantile Exchange, Nasser bin Khamis Al Jashmi, Secretary General of the Ministry of Finance of the Sultanate of Oman, Abdullah bin Salem Al Harthy, Undersecretary of the Ministry of Finance of the Sultanate of Oman, and Derek Samman, Senior Director, Head of Global Commodities Markets, Borsa Chicago Trade, and Raed Bin Khalifa Al Salami, Director General of the Dubai Mercantile Exchange.

achievements

His Highness, Deputy Ruler of Dubai, was briefed on the qualitative achievements of the Dubai Energy Exchange during the last period, as the number of companies using the exchange platform for actual delivery reached 60 companies, and the number of barrels of oil delivered through the exchange mechanism reached 2.5 billion barrels, while 17 billion barrels were traded The number of barrels of oil that are priced according to the futures contracts for Oman crude, on a daily basis, is 5.2 million barrels.

The Dubai Energy Exchange lists the DME Oman contract as its main contract, which provides the most disciplined and transparent crude oil standards in the region, until the Oman crude future contract has become the main indicator for about 170 million barrels of crude oil per month since 2018, after it was limited to Pricing about 30 million barrels per month.

It is noteworthy that the DME is the first international exchange in the Middle East for energy futures and commodities, and it aims to provide oil production companies, traders and customers interested in the markets with transparent and credible prices for crude oil, as it provides a trading environment that is subject to tight laws and depends on standards of transparency and financial security.

The main shareholders in the stock exchange own a majority stake, and they are Tatweer Company, a member of Dubai Holding, the Chicago Commodity Exchange Group, and the Oman Investment Authority.

A large group of leading international financial institutions and energy trading companies were keen to acquire stakes in the DME shares, including “Goldman Sachs”, “Morgan Stanley”, “JP Morgan”, “Vitol” and “Vitol Group”. Shell”, which gave the stock market more confidence from the most prominent global energy companies.

electronic systems

The DME uses the most advanced electronic systems in all its operations, which can be accessed from more than 20 regions, including the major financial centers in Asia, Europe and the United States.

The exchange is located within the Dubai International Financial Center and is governed by the laws of the Dubai Financial Services Authority. All trades are also cleared and guaranteed through CME Clearing, a subsidiary of the Chicago Mercantile Exchange Group.

The DME is also subject to the controls imposed by the Dubai Financial Services Authority, where all trading operations are cleared through the clearing house of the New York Mercantile Exchange (a member of the Chicago Mercantile Exchange Group), and regulated by the US Commodity Futures Commission (CFTC).