NASDAQ Dubai offers exciting opportunities to retail and institutional investors. Whether based in the UAE, in the rest of the NASDAQ Dubai region or elsewhere in the world, investors can choose from a range of securities to help maximize total return in all economic environments.
Diversification across multiple asset classes
The exchange enables investors to hold positions across multiple asset classes, allowing them to diversify their portfolio and thereby manage market volatility.
These give investors an ownership stake in listed companies, enabling them to benefit from their success if the share price rises. Many companies also make regular payments to investors out of their profits. These are known as dividends.
Bonds and Sukuk
Companies can issue these to raise capital from investors. They must return the amount raised to them at a set date. In the meantime investors also receive regular payments.
On NASDAQ Dubai, these are products based on underlying shares of UAE companies, or on the FTSE NASDAQ Dubai UAE 20 index.They are widely seen as hedging tools as well as investments in their own right.
Exchange-traded funds (ETFs)
These are investment funds that can hold assets of various classes, such as shares, or bonds. Many ETFs track an index. They can be traded on-exchange much like shares.
Exchange-traded commodities (ETCs)
These are similar to ETFs. They track the performance of a single underlying commodity (such as oil) or a group of commodities
Real Estate Investment Trusts (REITs)
These securities are invested directly in property and benefit from the income stream from it, such as rent. They can be traded on-exchange much like shares.
Price movements of various asset classes often differ widely from each other; for example the returns from stocks and bonds have historically tended to diverge markedly. Investors can diversify accordingly.
NASDAQ Dubai is currently able to offer trading in equities, equity derivatives, ETFs, ETCs and REITs. The exchange proposes to add bonds and Sukuk also, subject to regulatory approval.