Dubai Financial Market Company (DFM), the firm which oversees the Dubai stock exchange, saw its net profit drop from AED137.9million in 2020 to AED103.8m in 2021, while the DFM Index saw its best performance since 2013, posting a 28.2 percent increase from 2020.
DFM’s total revenues reached AED294.6m compared to AED337.2m the previous year with the total revenue comprising of AED213m operating revenues and AED81.6m investment revenues and others.
Net profit during the fourth quarter of 2021 increased by 269 percent to AED65.7m compared to AED17.8m for the same period the previous year, while the company’s total revenue increased by 68 percent AED111.5m compared to AED66.2m.
In an indicator of its cost-efficiency policies, DFMC reduced its 2021 expenses by 4 percent to AED190.8m compared to AED199.3m in 2020.
Meanwhile, trading value increased 10.2 percent to AED72.3bn compared to 2020 and the Market Capitalisation of listed securities increased 20.5 percent to AED411bn. The DFM ended the year with a strong note as trading value jumped 126 percent during the fourth quarter to AED33.6bn, equivalent to 46.5 percent of the full-year trading value.
“The year 2021 ushered in a ‘new chapter’ in DFM’s momentous journey. We deeply believe that DFM’s prospects and ability to achieve sustainable growth remain promising owing to the leadership’s vision and the numerous initiatives announced during the past few months by the Higher Committee for Development of Financial Markets,” said Helal Al Marri, chairman of DFM.
“Our confidence stems from DFM’s world-class infrastructure and regulations and its demonstrated business excellence. These factors jointly position DFM to endure its dynamic role and sustain growth and its active contribution in efforts aimed at strengthening Dubai’s status as a capital markets hub globally,” he continued.
In 2021, foreign investors maintained their strong presence with a 45.8 percent market share of DFM’s trading value. They were also net buyers of AED1.9bn, and their ownership of the market capitalisation reached 22.5 percent at the end of the year. Similarly, institutional investors accounted for 45.8 percent of trading activity with a net purchase of AED656m.
The DFM attracted 7,342 new investors, including 677 institutions, bringing its investor base at the end of 2021 to 852,212 investors from 209 nationalities. Foreign investors accounted for 63 percent of the new investors (4,626). Last November, DFM introduced an incentives program to encourage new IPOs and listings from private sector companies. The move targeted firms representing numerous rapidly growing economic sectors that strongly contribute to the GDP as well as the new-economy related companies.
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