Scope Markets, the retail arm of brokerage firm Rostro Group, announced on Wednesday that it has launched index CFDs on UAE stocks.
The AD15 reflects changes in the Abu Dhabi stock market and the DXBI does the equivalent for Dubai.
Investors using Scope Markets will be able to access the products withe leverage of up to 20:1.
“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,” said Scope Markets CEO Pavel Spirin.
“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.”
UAE stocks have become increasingly popular among brokers over the last couple of years.
TradeInformer understands that that is often a reflection of client demand from the local market. Leverage stock trading has been popular historically in the region, particularly in Saudi Arabia where it is widely available, even as CFD products are not.
However, in a statement Scope Markets noted that foreign investors accounted for almost half of trading activity on the UAE’s exchanges in 2023. Almost three-quarters of new investors that year were from overseas.
The implication of that would be that there is appetite for these new products beyond the local UAE market.
“At Scope Markets we have now developed these proprietary instruments which we believe provide a genuine market differentiator for us as a brokerage,” said Mitesh Vaghela, Chief Business Officer at Scope Markets. “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.”
