Managing Financial Risk by Using Derivatives : A Study of United Arab Emirate Listed Companies

The present paper attempts to identify the ways that the United Arab Emirate listed companies manage their financial risk with the use of derivatives. By examining the companies' annual reports and financial reviews for the year 2015. The studied revealed that low use of the financial derivatives within Investment and the real estate industries. The use of the derivatives was only 25% while is consider to be below due to the high risk associated with the industry. The risk management tools available for hedging real-estate risk within the United Arab Emirate financial market are very much in their infancy and have problems ranging from illiquidity of trading to lack of theoretical development regarding modeling