Dubai Financial Markets (DFM) records an impressive 109 percent surge in net profits

It comes as no surprise that the Dubai markets have been making headlines with impressive record breaking numbers month-on-month and overall in 2023. And with these numbers, Dubai’s population and new business have also increased dramatically, currently being at an all-time high!

To meet this news, the Dubai Financial Market (DFM) has also announced its remarkable performance over the last nine months in 2023, and we have all the data to break it all down for you.

What are the key takeaways from DFM’s report?

The key takeaways include a staggering 109% surge in net profit, which surpassed AED 186.2 million ($50.7 million). This growing feat is attributed to an increase in trading activity, overall trade value, and the influx of new investors.

To put this into perspective, in the same period last year in 2022, DFM reported a net profit of AED 89 million. The total consolidated revenue in 2023 reached a significant amount of AED 351.8 million ($95.79 million), marking a 48% increase compared to AED 237.8 million ($64.75 million) in the corresponding period in 2022.

Out of this, AED 214.2 million comes from operating income, while AED 137.6 million stems from investment returns and other income.

On the expense side, DFM reported total expenses of AED 165.6 million in 2023, which is slightly higher when compared to AED 148.8 million during the same period in 2022.

The DFM General Index also witnessed a substantial rise, increasing by 25% during the first nine months of 2023 and closing at AED 4,136.58.

A total of 1.43 million trades took place, with a cumulative value of AED 78 billion, representing a 37% increase in trades and a 13% increase in value compared to the same period last year.

Perhaps one of the most significant indicators of DFM's success is the surge in its market capitalization. The total market capitalization of DFM increased from AED 576 billion in 9M 2022 to AED 697 billion this year. The financial sector led the way, contributing 41% to DFM’s capitalization, followed by utilities (23%), real estate (17%), industrials (14%), and communication services (3%).

Commenting on these impressive results, Helal Saeed Al Marri, Chairman of DFM, said, "We are pleased to report a significant increase in revenue and net income for 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, added, "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."

DFM’s growing investor base is also worth noting. During the period, the platform welcomed 35,357 new investors, crossing the remarkable one-million mark for the total investor base. A remarkable 72% of these new investors came from foreign markets, representing over 200 nationalities. Notably, institutional investors played a significant role, accounting for 56% of the trading value with net purchases of AED 1.54 billion.

Hamed Ali attributes the increase in the number of foreign investors to the success of international roadshows, and he emphasised their commitment to expanding DFM's reach further in the upcoming roadshow in New York.

Impressive, isn’t it?

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