Dubai Financial Market (DFM) announced its consolidated financial results for the period ended 30 September 2023. Net profit increased by 109% to AED 186.2 million, compared to AED 89 million in the corresponding period in 2022. With a notable increase in the number of trades, overall trade value, and an influx of new investors, DFM’s robust performance reinforces Dubai as the pivotal hub in the global financial landscape.
Strong financial performance
DFM’s total consolidated revenue increased by 48% to AED 351.8 million during the first nine months of 2023, compared to AED 237.8 million during the corresponding period of 2022. The revenue comprises AED 214.2 million in operating income and AED 137.6 million in investment returns and other income. Meanwhile, total expenses reached AED 165.6 million compared to AED 148.8 million in the same period ending September 2022.
Robust trading activity
The total number of trades increased to 1.43 million trades in the first nine months of 2023, representing a notable 37% increase in trading activity over the same period last year. Concurrently, the total trading value rose to AED 78 billion, recording an increase of 13% over the same period last year. The DFM General Index also rose by 25% during this period, closing at 4,136.58.
Sustained investor confidence
In the first nine months of 2023, DFM proudly welcomed 35,357 new investors to its platform, of which 72% were from foreign markets representing over 200 nationalities, bringing the current investor base to over one million. Additionally, institutional investors accounted for 56% of the trading value, with net purchases of AED 1.54 billion. This influx of new investors demonstrates DFM’s global appeal as a thriving financial ecosystem.
Diverse sectoral representation
DFM’s market capitalization witnessed substantial growth, increasing from AED 576 billion in 9M 2022 to AED 697 billion in 9M 2023. DFM’s sector distribution by market capitalization: Financials at 41%, Utilities at 23%, Real Estate at 17%, Industrials at 14%, Communication Services at 3%, with others such as Consumer Staples making up the rest. This presents opportunities to bring underrepresented sectors to the market and reflects Dubai’s GDP mix.
Commenting on DFM’s resilient performance, H.E Helal Saeed Al Marri, Chairman of DFM, said: “We are pleased to report a significant increase in revenue and net income 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, said, “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. Our commitment to expanding our product verticals with the introduction of new asset classes, onboarding of digital brokers for seamless trading experience, and the launch of innovative programs such as the IPO Accelerator underscores our dedication to strengthening the overall financial ecosystem.’’
He added, “The increase in our foreign investor base can be attributed to the success of our international roadshows. DFM’s recent roadshow in Singapore last month witnessed impressive participation, fostering global partnerships, and enhancing our international presence. We are now looking to further expand DFM’s reach as we prepare for the upcoming roadshow in New York next month.”
Since its launch this year, DFM’s IPO Accelerator Programme, supported by 20 esteemed regional and global advisors, has provided more than 40 participating private companies including family businesses significant opportunities in their growth journey. Furthermore, in line with DFM’s ongoing digital transformation efforts in 2023 till date, a number of brokers were successfully onboarded, marking another milestone in DFM’s mission to keep innovation at the forefront of their products and services.