DFM Net Profit Soars 109% to $51 Million in First Nine Months of 2023

Dubai Financial Market’s (DFM) nine-month net profit soared by 109% to $50.69 million, compared with $243.23 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, DFM said on Tuesday.

DFM’s total consolidated revenue increased by 48% to $95.78 million during the first nine months of 2023, compared with $64.74 million during the corresponding period of 2022.  The revenue includes $58.32 million in operating income and $37.46 million in investment returns and other income. The total expenses reached $45.09 million compared with $40.51 million in the same period ending September 2022. 

Trading Activity Robust

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 $21.24 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.

In the first nine months of 2023, DFM 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 $420 million. This influx of new investors demonstrates DFM’s global appeal as a thriving financial ecosystem.

Diverse Sectoral Representation

DFM’s market capitalisation witnessed substantial growth, increasing from $156.82 billion in the first nine months of 2022 to $189.76 billion in the first three quarters of 2023.

DFM’s sector distribution by market capitalisation is Financials (41%), Utilities (23%), Real Estate (17%), Industrials (14%) and Communication Services (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.

 DFM Chairman Helal Saeed Al Marri said that there was a significant increase in revenue and net income the first nine months of the year, underscoring DFM’s unwavering commitment to diversification and our forward-thinking initiatives to position the exchange as the marketplace of choice for both investors and issuers.

Hamed Ali, CEO of DFM and Nasdaq Dubai, said that the robust performance witnessed in the first nine months 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 said.

Foreign Investor Base

He also said that the increase in DFM’s foreign investor base can be attributed to the success of their international roadshows. DFM’s recent roadshow in Singapore last month witnessed impressive participation, fostering global partnerships enhancing DFM’s international presence.

“We are now looking to further expand DFM’s reach as we prepare for the upcoming roadshow in New York next month,” he added.

Since its launch this year, DFM’s IPO Accelerator Programme, supported by 20 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.