The Dubai Government has revealed for the first time the price it charges for oil exports to try to bolster the stature of a crude oil futures contract traded on the Dubai Mercantile Exchange (DME).
Dubai crude delivered in September will cost US$0.18 less than the price of Oman sour crude traded on the DME, the Department of Petroleum Affairs announced, two days after the DME saw trade volumes hit a record high as a result of Dubai's new pricing scheme.
Under the new system, Dubai will directly tie the price of its crude to the futures contract, minus the discount. The move was read as a strong endorsement of the DME's two-year-old futures contract, which aims to become a benchmark for Middle East oil prices.
The DME recorded 8,076 trades on Tuesday. Volumes dropped to 5,621 Wednesday and data for yesterday was not available by the time of publication.
"The last two days should have happened two years ago," said John Samuels, the chairman of Translux, which regularly trades on the DME. "It is simply a reflection of the so-called market makers finally seeing that Dubai is serious and therefore a trading hub."
Most of the big Gulf oil exporters set their official selling prices for crude on the basis of prices published by trade press, which survey both buyers and sellers. Those numbers are influenced by futures contracts traded in London and New York.
The DME argues that its Oman contract better reflects the quality of Middle East crude and would serve as a more accurate benchmark for pricing Middle East oil.
But up until this week, trading volumes have stayed low, often falling under 1,000. The New York Mercantile Exchange sees several hundred thousand trades a day.
Mr Samuels said volumes would have to exceed 10,000 trades a day for oil traders in New York and other major trading centres to take notice.
"The goal is 50,000 contracts a day, and it's do-able," he said. "Once it starts, then people get excited about the options, the gaps. There are endless opportunities. It feeds on itself."
The interest would fuel the growth of Dubai's financial sector, Mr Samuels said, because bigger trading firms would open offices in the city.
"Right now the Gulf region has an opportunity not only to be a production hub, but an actual trading hub," he said. "It requires the market makers; the independent traders as well as the Goldman Sachs of the world."
cstanton@thenational.ae
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Seemar’s top six for the Dubai World Cup Carnival:
1. Reynaldothewizard
2. North America
3. Raven’s Corner
4. Hawkesbury
5. New Maharajah
6. Secret Ambition
COMPANY%20PROFILE
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Jigra
Starring: Alia Bhatt, Vedang Raina, Manoj Pahwa, Harsh Singh
How to book
Call DHA on 800342
Once you are registered, you will receive a confirmation text message
Present the SMS and your Emirates ID at the centre
DHA medical personnel will take a nasal swab
Check results within 48 hours on the DHA app under ‘Lab Results’ and then ‘Patient Services’
if you go
The flights Fly Dubai, Air Arabia, Emirates, Etihad, and Royal Jordanian all offer direct, three-and-a-half-hour flights from the UAE to the Jordanian capital Amman. Alternatively, from June Fly Dubai will offer a new direct service from Dubai to Aqaba in the south of the country. See the airlines’ respective sites for varying prices or search on reliable price-comparison site Skyscanner.
The trip
Jamie Lafferty was a guest of the Jordan Tourist Board. For more information on adventure tourism in Jordan see Visit Jordan. A number of new and established tour companies offer the chance to go caving, rock-climbing, canyoning, and mountaineering in Jordan. Prices vary depending on how many activities you want to do and how many days you plan to stay in the country. Among the leaders are Terhaal, who offer a two-day canyoning trip from Dh845 per person. If you really want to push your limits, contact the Stronger Team. For a more trek-focused trip, KE Adventure offers an eight-day trip from Dh5,300 per person.
The five types of long-term residential visas
Obed Suhail of ServiceMarket, an online home services marketplace, outlines the five types of long-term residential visas:
Investors:
A 10-year residency visa can be obtained by investors who invest Dh10 million, out of which 60 per cent should not be in real estate. It can be a public investment through a deposit or in a business. Those who invest Dh5 million or more in property are eligible for a five-year residency visa. The invested amount should be completely owned by the investors, not loaned, and retained for at least three years.
Entrepreneurs:
A five-year multiple entry visa is available to entrepreneurs with a previous project worth Dh0.5m or those with the approval of an accredited business incubator in the UAE.
Specialists
Expats with specialised talents, including doctors, specialists, scientists, inventors, and creative individuals working in the field of culture and art are eligible for a 10-year visa, given that they have a valid employment contract in one of these fields in the country.
Outstanding students:
A five-year visa will be granted to outstanding students who have a grade of 95 per cent or higher in a secondary school, or those who graduate with a GPA of 3.75 from a university.
Retirees:
Expats who are at least 55 years old can obtain a five-year retirement visa if they invest Dh2m in property, have savings of Dh1m or more, or have a monthly income of at least Dh20,000.
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
COMPANY PROFILE
● Company: Bidzi
● Started: 2024
● Founders: Akshay Dosaj and Asif Rashid
● Based: Dubai, UAE
● Industry: M&A
● Funding size: Bootstrapped
● No of employees: Nine
Company%20Profile
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