By Nikhil Pereira
The UAE's "pro-active" approach in dealing with the pandemic's repercussions has helped various business sectors
The Dubai Financial Market company (DFM) registered a 21% increase in its net profits to AED78.9m for H1 2020, compared to AED65.1m for the same period in 2019.
DFM's net profit for Q2 2020 reached AED 44.2m, a 20% increase compared to Q2- 2019’s level of AED 37m.
“The second quarter performance clearly indicates the DFM’s resiliency in containing international markets’ volatility due to the repercussions of unprecedented circumstances triggered by the Covid-19 pandemic with the general index advancing 16%, restoring a considerable percentage of its previous decline,” said DFM’s chairman Essa Kazim.
Kazim also lauded the UAE’s “pro-active approach dealing with the pandemic’s repercussions” as various economic sectors have benefitted from numerous stimulus packages.
The company recorded a total revenue of AED181.1m in H1 2020 compared to AED163.5m during H1 2019.
“During the first six months of 2020, the DFM’s trading value has exceeded AED31bn, a 25% increase compared to the corresponding period of 2019,” Kazim added.
DFM also attracted 1,718 new investors during the first half, lifting total number of DFM’s investor base to 845,770.
Foreign investors’ market share reached 49% of trading activity during the first half and to 18.2% of the market capitalisation at the end of June 2020.
At the end of April, DFM Company has launched Dubai Clear and Dubai CSD as independent companies for post-trade services.
Dubai Clear is the region’s first independent company central counterparty (CCP) for equity clearing and Dubai CSD is the UAE’s first independent central securities depository (CSD) company.
Kazim says that the companies will enhance market structure and bring post trade services in line with international best practices.
“It also represents a significant milestone in strengthening UAE markets’ infrastructure and competitiveness as well as DFM’s commitment to reinforcing its infrastructure and achieving highest levels of business excellence,” he added.
Earlier in March, DFM underwent its largest technological upgrade to date by migrating to the Nasdaq Financial Framework (NFF).