DFM Company posts Dh137.9m net profit in 2020

The DFM attracted 4,027 new investors, including 2,350 international investors

Dubai - Foreign investors accounted for 50 per cent of trading and 19 per cent of market capitalization

A Staff Reporter

Published: Tue 2 Feb 2021, 10:33 PM

Dubai Financial Market Company has announced its results for the financial year ending December 31, 2020, posting a net profit of Dh137.9 million, a 14 per cent growth compared to Dh120.6 million in 2019.

Total revenues increased seven per cent to Dh337.2 million compared to Dh315.8 million. The total revenue comprised of Dh219 million of operational revenues and Dh118.2 million of investment revenues and others. Company expenses reached Dh199.3 million during 2020 compared to Dh195.2 million in 2019.

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The net profit of the fourth quarter of 2020 reached to Dh17.8 million compared to Dh25.1 million in the last quarter of 2019, while total revenue of the Company decreased to Dh66.2 million compared to Dh74.2 million.

It is noteworthy that the total value of DFM’s trading has increased 24 per cent in the year 2020 to Dh66 billion and 10 per cent in the fourth quarter to Dh15 billion.

The board of directors reviewed and approved the annual results ahead of submission for ratification during the annual general meeting of the company that will be held based on the approval of the Securities and Commodities Authority (SCA). The board also approved the issuance of the “Free Zone Companies Listing Regulations” as well as the issuance of the “Stabilization Mechanism Regime”.

Essa Kazim, chairman of the company, said: “Despite of the pandemic, the 2020 witnessed a significant number of achievements for the DFM, as the global crisis didn’t halt the implementation of strategic development plans that reinforced DFM’s business excellence, competitiveness and sustainable growth. The high level of resiliency as well as the positive indicators of 2020 demonstrated by DFM underline the deep confidence of various market participants including; investors, issuers, brokers, etc.”

He added: “These indicators also underline DFM’s remarkable business continuity abilities and its success in benefiting from the UAE’s noticeable response to the pandemic’s repercussions. Within this context, the DFM’s total traded value increased 24 per cent to Dh66 billion and 2,350 new international investors joined the market, lifting total number of new investors in 2020 to 4,027 investors. International investors maintained their strong presence on the market, accounting for 50 per cent of traded value with net purchases of Dh661 million and a shareholding of 19 per cent of total market capitalization by the end of 2020.”

The DFM General Index has regained a significant proportion of its previous decline, recovering 49.8 per cent compared to its lowest level of the year registered last April at the height of the global markets’ fluctuations, hence limiting its decline to 9.9 per cent by the end of 2020. The year 2020 has also witnessed notable expansion in diversifying product offering and asset classes, a key pillar of DFM’s strategy, with the launch of equity futures as well as the listing of Chimera Investments’ Umbrella Exchange Traded Fund (ETF).

“We are endeavoring to strengthen this drive by listing more ETFs and Real Estate Investment Trusts (REITs), while expanding the equity futures and other asset classes, offering our investors an even more diverse range of opportunities. Additionally, we have completed our preparations to open up new horizons of capital markets to freezone companies, offering them the opportunity to avail the many benefits of listing and trading on DFM. We are also enduring our constant efforts to attract companies from various economic sectors, strengthening the market’s leading position as the most favored listing venue, by encouraging family and private businesses to list benefiting from the recent legislative and regulatory developments in the UAE. We believe that these regulatory enhancements create the right foundation enabling investors to set up and list their companies and reinforcing UAE’s leading position as a favorite destination for foreign investments,” Kazim said.

business@khaleejtimes.com