The planned purchase by the Saudi Tadawul Group (STG) of a 32.6% stake in the Dubai Mercantile Exchange (DME) is intended to catalyze a major expansion push for the latter exchange. The DME’s core current offering is the Oman crude oil futures contract, a key regional pricing benchmark, but it is planning an ambitious expansion both into new commodities and other GCC states. MEES understands that the first new products could be launched as soon as Q4 this year.

To reflect the exchange’s broader focus, it will be rebranded as the Gulf Mercantile Exchange following completion of the transaction (MEES, 19 January). The partners add that the DME will continue to operate from its headquarters in Dubai’s DIFC and will remain regulated by the Dubai Financial Services Authority (DFSA). With Saudi Arabia becoming a key partner, a Riyadh office will be opened in the near future. (CONTINUED - 1575 WORDS)