Dubai Financial Market Company’s (DFM) net profit rose 133 percent to AED89 million ($24.23 million) for the first nine months of the year ending 30 September, compared to AED38.1 million ($10.37 million) in the same period last year, spurred by a number of new listings spearheaded by such heavyweight companies like DEWA and Salik.
The total revenue of DFM reached AED237.8 million ($64.75 million) during the first nine months of this year compared to AED183.1 million ($49.86 million) during the corresponding period of the previous year. The revenue is comprised of AED173.3 million of operating income and AED64.5 million of investment returns and other income.
Helal Al Marri, Chairman of the DFM Company, said: “We have posted a strong set of results in the third quarter. Increasing investor interest and activity is testament to the dynamism and growth of Dubai’s capital markets. This is illustrated by the DFM being one of the most active listing venues globally right now.”
During the first nine months of 2022, the total trade value jumped 79.5 percent to AED69.5 billion compared to AED38.7 billion during the same period of 2021.
It is noteworthy that the total market capitalisation of listed securities increased 40 precent to AED575.5 billion compared to AED411 billion at the end of 2021, as a result of both organic and non-organic growth driven by the wave of successful IPOs, as well as improvement in listed securities’ performance. The DFM General Index advanced 4.5 percent this year.
Al Marri added: “As DFM’s successful digital transformation strategy comes into fruition, the number of new investors who joined the market during the first nine months has increased 41 times to 155,060 compared to 3799 investors during the corresponding period in 2021. Investors have rushed into the market to participate in the continuous IPOs from leading enterprises that reinforced the depth and diversity of our market.”
DFM was attractive to foreign investors as well. They accounted for 47.3 percent of trading value during the period with net purchases of AED3.2 billion, a 146 percent increase compared to the corresponding period last year. Their ownership reached to 19.1 percent of the total market capitalisation. Institutional investors accounted for 46.7 percent of total trade value with a net purchase of AED1.3 billion.
The company’s expenses increased by 2.6 percent to AED148.8 million by the end of September 2022 compared to AED145 million in the same period of 2021. Despite the significant increase in operating revenue, DFM managed to cap the operating expenses increase to just 0.4 percent as a result of operational efficiencies and cost optimisation initiatives.
The DFM investor base crossed the one million mark for the first time, climbing 9 percent to 1,004,486. Foreign investors accounted for 71.8 percent of the new investors, meanwhile 647 new institutional investors have also joined the market.
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