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Dubai Financial Market announces 109 per cent rise in nine-month net profit

In the first nine months of 2023, the DFM attracted 35,357 new investors

Dubai Financial Market (DFM) on Monday announced that its net profit increased by 109 per cent to Dh186.2 million for the period ended 30 September 2023, compared to Dh89 million in the corresponding period in 2022.

With a notable increase in the number of trades, overall trade value, and an influx of new investors, DFM’s robust performance reinforces Dubai as the pivotal hub in the global financial landscape.

DFM’s total consolidated revenue increased by 48 per cent to Dh351.8 million during the first nine months of 2023, compared to Dh237.8 million during the corresponding period of 2022. The revenue comprises Dh214.2 million in operating income and Dh137.6 million in investment returns and other income. Meanwhile, total expenses reached Dh165.6 million compared to Dh148.8 million in the same period ending September 2022.

The total number of trades increased to 1.43 million trades in the first nine months of 2023, representing a notable 37 per cent increase in trading activity over the same period last year. Total trading value rose to Dh78 billion, recording an increase of 13 per cent over the same period last year. The DFM General Index also rose by 25 per cent during this period, closing at 4,136.58.

Sustained investor confidence

In the first nine months of 2023, DFM welcomed 35,357 new investors to its platform, of which 72 per cent were from foreign markets representing over 200 nationalities, bringing the current investor base to over one million. Additionally, institutional investors accounted for 56 per cent of the trading value, with net purchases of Dh1.54 billion. This influx of new investors demonstrates DFM’s global appeal as a thriving financial ecosystem.

Diverse sectoral representation

DFM’s market capitalisation witnessed increased from Dh576 billion in 9M 2022 to Dh697 billion in 9M 2023. DFM’s sector distribution by market capitalisation: Financials at 41 per cent, Utilities at 23 per cent, Real Estate at 17 per cent, Industrials at 14 per cent, Communication Services at 3 per cent, with others such as Consumer Staples making up the rest. This presents opportunities to bring under-represented sectors to the market and reflects Dubai’s GDP mix.

Helal Saeed Al Marri, Chairman of DFM, said: “We are pleased to report a significant increase in revenue and net income the first nine months of the year, underscoring our unwavering commitment to diversification and our

forward thinking initiatives to position DFM as the marketplace of choice for both investors and issuers.”

Hamed Ali, CEO of DFM and Nasdaq Dubai, said: “The robust performance witnessed in the first nine months of the year reflects the resilience and strength of Dubai’s capital market. With a significant increase in our trade numbers, expanding sector diversity, and a surge in new investors, DFM is well positioned to continue driving growth and innovation in the global financial landscape. Our commitment to expanding our product verticals with the introduction of new asset classes, onboarding of digital brokers for seamless trading experience, and the launch of innovative programs such as the IPO Accelerator underscores our dedication to strengthening the overall financial ecosystem.’’

He added, “The increase in our foreign investor base can be attributed to the success of our international roadshows. DFM’s recent roadshow in Singapore last month witnessed impressive participation, fostering global partnerships, and enhancing our international presence. We are now looking to further expand DFM’s reach as we prepare for the upcoming roadshow in New York next month.”

Since its launch this year, DFM’s IPO Accelerator Programme, supported by 20 esteemed regional and global advisors, has provided more than 40 participating private companies including family businesses significant opportunities in their growth journey. Furthermore, in line with DFM’s ongoing digital transformation efforts in 2023 till date, a number of brokers were successfully onboarded, marking another milestone in DFM’s mission to keep innovation at the forefront of their products and services.