Dubai government’s effort to increase trade volumes in Dubai Financial Market (DFM) is paying dividends. Thanks to increasing activity, the DFM has announced a 134 percent jump in net profit for the second quarter of 2022.
In its consolidated financial results filed for the first half of the year ended 30th June 2022, DFM said that net profit increased to AED35.9 million for the second quarter, compared to the same quarter in 2021 (AED15.3 million).
The total trading value increased by 75 percent during the first half of 2022 to AED49.4 billion from AED28.2 billion during the same period of the year 2021, while the total market capitalisation of listed securities increased 28.2 percent to AED527 billion compared to end of 2021 level of AED411 billion.
As many as 70,432 new investors registered with the DFM during the first half of this year compared to 1,842 investors in the corresponding period of last year. That amounts to an increase of 38 times. The total number of investors in DFM is now 921,550, hailing from 212 different countries. International investors accounted for 72 percent of the new investors.
Among the companies that were recently listed on DFM are Dubai Electricity and Water Authority (DEWA) and the supermarket chain Union Co-operative.
“During the first half, the DFM welcomed the listing of DEWA, the largest initial public offering in the UAE financial markets’ history. Additionally, our product diversification strategy gained further momentum by launching trading of Oman Crude Oil Futures as well as new equity futures contracts.
“The first half also witnessed the accomplishment of key initiatives to develop the regulatory framework through the introduction of the listing and trading rules of cooperatives and special purpose acquisition companies (SPAC), which strengthens DFM’s ability to attract more listings and diversify investment opportunities.”
The DFM remained attractive to international investors, who accounted for 47 percent of its trading value during the first half with net purchases of AED2.6 billion. Foreign ownership reached 19.8 percent of the total market capitalisation by the end of June 2022.
During the second quarter of 2022, revenue reached AED85.2 million compared to AED63.2 million in the second quarter of 2021, while expenses amounted at AED49.3 million compared to AED47.9 million during Q2-2021.
Total consolidated revenue reached AED163.8 million in H1 2022 compared to AED136.6 million during the same period last year. Operating income led to revenue of AED121.4 million, and AED42.4 million came from investment income and others. Total Expenses were AED100.4 million, compared to AED97.8 million recorded during H1-2021.
Helal Al Marri (pictured), DFM Chairman, said: “The DFM has witnessed a positive performance driven by the increasing interest from various market participants and the deep confidence in its prospects in light of the accelerating steps to implement Dubai’s financial markets development strategy.
Institutional investors accounted for 53.6 percent of the trading value, which reflects local and international investors’ confidence in the market, Al Marri added.
The DFM also onboarded 426 new institutional investors during the first half, including 303 foreign institutions.
Follow us on
