Dubai Financial Market (DFM) has reported an impressive 109 percent increase in its net profit for the first nine months of 2023.

This substantial growth has propelled the net profit to Dh186.2 million, compared to Dh89 million during the same period in 2022.

This exceptional performance by DFM is not only reflected in its profit but also in its trading activities and investor base.

During this period, the market saw a significant surge in the number of trades, trade value, and the influx of new investors, further solidifying Dubai’s position as a key global financial hub.

DFM’s total consolidated revenue for the first three quarters of 2023 also exhibited a robust increase, soaring by 48 percent to Dh351.8 million when compared to Dh237.8 million in the corresponding period of 2022.

This revenue is composed of Dh214.2 million from operating income and Dh137.6 million from investment returns and other income. Concurrently, total expenses reached Dh165.6 million, up from Dh148.8 million in the same period ending in September 2022.

The trading landscape at DFM witnessed remarkable growth, with the total number of trades escalating to 1.43 million in the first nine months of 2023, marking a noteworthy 37 percent increase in trading activity compared to the previous year.

Additionally, the total trading value surged to Dh78 billion, reflecting a 13 percent increase from the same period in 2022. Notably, the DFM General Index also exhibited an upward trajectory, rising by 25 percent during this period and closing at 4,136.58.

The confidence of investors remained strong throughout this period, with DFM welcoming an impressive 35,357 new investors to its platform in the first nine months of 2023. Of these, 72 percent hailed from foreign markets, representing over 200 nationalities, bringing the total investor base to over one million.

Furthermore, institutional investors accounted for 56 percent of the trading value, with net purchases amounting to Dh1.54 billion. This influx of new investors underscores DFM’s global appeal as a thriving financial ecosystem.

DFM’s market capitalization has also seen substantial growth, increasing from Dh576 billion in 9M 2022 to Dh697 billion in 9M 2023.

This growth is accompanied by sector diversification, with Financials at 41 percent, Utilities at 23 percent, Real Estate at 17 percent, Industrials at 14 percent, Communication Services at 3 percent, and other sectors such as Consumer Staples making up the remainder.

This reflects the opportunities for under-represented sectors in the market and mirrors Dubai’s diverse GDP composition.

Helal Saeed Al Marri, Chairman of DFM, expressed satisfaction with the significant increase in revenue and net income, emphasizing the commitment to diversification and initiatives to establish DFM as the preferred marketplace for both investors and issuers.

Hamed Ali, CEO of DFM and Nasdaq Dubai, highlighted the resilience and strength of Dubai’s capital market, driven by a surge in trade numbers, sector diversity, and a surge in new investors.

He also emphasized DFM’s dedication to expanding its product offerings and services, emphasizing innovation as a top priority.

DFM’s IPO Accelerator Programme, introduced this year, has already provided numerous private companies with significant growth opportunities.

Additionally, ongoing digital transformation efforts have led to the successful onboarding of several brokers, further solidifying DFM’s commitment to innovation and modernization in the financial sector.

Last Updated: 31 October 2023