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DFM net profit soars 124% to Dh329.4 million

Market capitalisation increased by 18% to Dh688 billion

Dubai Financial Market Company (PJSC) on Tuesday announced its net profit for the fiscal year ending on December 31 2023, increased 124 per cent in to Dh329.4 million, compared to Dh147.1 million in 2022.

DFM concluded 2023 on a high note, driven by a significant uptick in trading activities, capital inflow and a notable influx of new investors.

During the board meeting, the Directors proposed a cash dividend of Dh280 million, representing 3.5 per cent of the capital and 95 per cent of the total retained earnings available for distribution.

Helal Al Marri, Chairman of DFM said, “In 2023, Dubai Financial Market marked a series of noteworthy accomplishments, underscoring its intrinsic strengths in adaptability, innovation, and an unwavering dedication to excellence. These achievements align seamlessly with the objectives outlined in the Dubai Economic Agenda “D33” showcasing the market’s pivotal role in fostering economic growth and solidifying Dubai’s stature as a key player on the global financial stage. The Board is pleased to witness the robust outcomes stemming from our proactive initiatives and the substantial progress that DFM has made towards redefining our capital market and business landscape. H.E. Helal Al Marri concluded by emphasizing the DFM’s ambition for the future, stressing their continued commitment to agility and flexibility with the aim of contributing to the continued successes of Dubai and enhancing its leading global position in the financial sector.”

Robust financial performance

During the year, the DFM General Index grew 21.7 per cent while DFM PJSC reported total revenues of Dh541.6 million for the full year of 2023, marking a 54 per cent increase from last year’s Dh351.2 million. The revenue includes Dh346.2 million in operating income and Dh195.4 million in investment returns and other income.

Overall expenses rose to Dh212.2 million, compared to Dh204.1 million during the corresponding period concluding in December 2022. In the fourth quarter of 2023, the company recorded a net profit of Dh143.2 million, compared to Dh58.1 million in the corresponding period of 2022. The total revenue for the period reached Dh204 million, exceeding the Dh113.4 million reported in Q4-2022.

Hamed Ali, CEO of DFM and Nasdaq Dubai, stated, “The year 2023 stands as a pivotal chapter in DFM’s journey. Our fiscal results not only highlight the robustness of our operational framework but also underscore the significant strides we are making in transforming our business, exploring new horizons, and expediting the advancement of UAE capital markets.” He continued, “DFM’s state-of-the-art infrastructure, market initiatives, and our drive to innovate and evolve, positions us strategically for continuous growth, solidifying Dubai’s status as a global epicenter for financial activities.”

Elevating the IPO landscape

In 2023, DFM solidified its status as a premier market for IPOs, listing Dubai Taxi Company and Al Ansari Financial Services, the first family-owned company. This propelled DFM to the forefront of the Mena markets, establishing itself as the benchmark for index performance. The two offerings raised Dh1.97 billion in 2023, marking an outstanding achievement. The overwhelming investor demand led to an oversubscribed value of Dh163 billion, underscoring the market’s attraction and resilience.

Sustainable financing Initiatives

Responsible financing remained a key focus for DFM this year as it ventured into sustainable financing initiatives, launching the carbon credit trading pilot programme at COP28. This aims to propel issuers toward achieving the 2050 sustainability goals, showcasing DFM’s commitment to driving positive environmental impact through innovative programs.

Market capitalisation growth

DFM experienced significant market capitalisation growth, rising from Dh582 billion in the end of 2022 to Dh688 billion in the same period of 2023. The sector distribution of DFM’s market capitalisation is closely aligned to reflect Dubai’s GDP mix with financials at 41 per cent, utilities at 22 per cent, real estate at 17 per cent, industrials at 15 per cent, and communication services at 3.4 per cent, while other sectors like consumer staples contributed to the remainder.

DFM concluded the year with a robust trading value increase of 12 per cent to Dh101 billion compared to 2022. Trading futures allows investors to tap into one of the world’s top-performing indices, fostering diversification and hedging opportunities for both retail and institutional investors, enhancing market depth and liquidity.

Enhancing market accessibility

DFM launched the omnibus accounts structure, a strategic initiative designed for holding securities. This move functions as a gateway, enabling international investors to access variety of investment opportunities and enhancing their engagement with DFM’s diversified portfolio.

Foreign investors maintained a strong presence, contributing to 47 per cent of DFM’s trading value with net purchases totalling Dh5.1 billion. Their market capitalisation share stood at 20 per cent at the close of the year. Additionally, institutional investors accounted for 58 per cent of the trading value. DFM’s success story continued with an impressive influx of 62,676 new investors, including 73 per cent of which were foreign investors, expanding the current investor base, which includes over a million individuals from over 200 nationalities, serves as a testament to the success of DFM’s digital onboarding journey.