Higher volumes lift DFM annual income by 167%

Dubai — Dubai Financial Market on Monday said its annual net profit for 2014 surged 167 per cent to Dh759.3 million as trading volumes increased.

The only listed stock market in the Gulf region said it attracted 27,000 new investors last year and net foreign investment inflows amounted to Dh4 billion following impressive revival of initial public offerings with the listing of four new joint stock companies on the exchange last year.

The company’s total revenues increased 107 per cent to Dh936.7 million in 2014 compared to Dh453.1 million recorded last year. The total revenue comprised of Dh879.7 million of operational revenues and Dh57 million of investment revenues and others. The firm’s board, which approved the annual results, proposed a cash dividend of seven per cent of the capital equivalent to Dh560 million.

Essa Kazim, Chairman, Dubai Financial Market, said the DFM has boosted its attractiveness to local and foreign investors when the UAE was classified as a global emerging market by leading international agencies such as MSCI and S&P Dow Jones as they realised that the UAE market has an integrated structure in line with the international best practices.

 “This development strongly indicates the consensus amongst international institutions on the opportunities available in the UAE Market as evident in the net foreign investment in-flow to the DFM that amounted to Dh4 billion during the year 2014, which also saw 27,000 new investors joining the vast investor base of DFM to exceed 833,000 investors,” he added.

He said the DFM has experienced an impressive revival of IPOs in 2014 with the listing of four new public joint-stock companies: Marka, Emaar Malls, Amanat Holding, and Dubai Parks & Resorts as well as the listing of Damac Properties Dubai as the debut listing of 2015.

The DFM has seen thriving investor activity during the past year, which has positively affected trade value and volume. The daily average trading value increased by 136.7 per cent rising to Dh1.5 billion in 2014 compared to Dh642 million in 2013.

Total trading value for the year jumped by 138.6 per cent rising to Dh381.5 billion, compared to Dh159.8 billion in 2013.  In the same context, the daily average number of traded shares grew by 25 per cent recording 639.5 million shares a day in 2014 compared to 510.7 million shares a day in 2013.

“We saw robust economic performance as our national economy has been maintaining an average growth rate of 4.2 per cent since 2010; and is likely to record higher growth rates ranging between 4.5 per cent and five per cent for the year 2014 and beyond,” Kazim concluded.

— muzaffarrizvi@khaleejtimes.com