DFM Posts 30% Increase in Profits in Q1-2023

Dubai Financial Market (DFM) on Friday said that it has posted 30% increase in its profit to $9.69 million compared with $7.49 million during the corresponding period in 2022.

Announcing its financial results for the first quarter of the year ending on 31 March DFM said that its total consolidated revenue has increased by 13% to $24.21 million in Q1 of 2023, compared with $21.41 million during Q1 of 2022.

The revenue includes $12.91 million of operating income and $11.30 million of investment returns and other income. Meanwhile, total expenses reached $14.52 million compared with $13.92 million during the same period in Q1 of 2022.

Solid Footing

Helal Saeed Al Marri, Chairman of DFM, said that they have started the year on a strong note. DFM’s unwavering commitment to our investors, stakeholders, and customers has enabled the bourse to navigate through a challenging environment and achieve growth.

According to him, “DFM’s trading value reached $5.17 billion during the first quarter of 2023 compared with $6.21 billion during the corresponding quarter of 2022. The DFM General Index advanced 2.1% and the market capitalisation increased 2.4% to $162.31 billion from its level at the end of 2022.

“Foreign investors maintained their strong presence through a market share of 56% of trading value during the first quarter and net purchases of $173.20 million, while their ownership reached 19% of the market capitalisation at the end of March 2023,” he averred.

Additionally, institutional investors’ share of trading value reached 68% with net purchases of $1.77 million. These results are a testament to the hard work and dedication of our team and the resilience of our business.

“We remain focused on delivering long-term value to all our stakeholders and look forward to the rest of the year with confidence,’ Al Marri said.

During the first quarter of this year, DFM attracted 14,635 new investors, of which 78% were foreign investors, resulting in a total investor base of 1,185,291 representing 215 nationalities. These figures reflect the market participants’ confidence and strong interest in DFM’s profitable trading and IPO opportunities.

He asserted that DFM’s exceptional performance in Q1 of 2023 reinforces its position as a leading financial market in the region. The exchange continues to strive for excellence, ensuring that it meets the ever-changing needs of its customers and stakeholders.

“With the current positive momentum, DFM is well-positioned to achieve its strategic objectives and reinforce its role as a global financial hub. We look forward to the future with confidence, and we remain committed to delivering sustainable value to all our stakeholders,” he added.

IPOs in UAE

There were three initial public offerings (IPOs) in the UAE in Q1 of 2023 raising proceeds of $3.2 billion, $2.5 billion of which were from the 50 times oversubscribed IPO of ADNOC Gas. The momentum in IPO activity is expected to continue into the near future with a strong IPO pipeline across both the public and private company sectors as well as increased investors’ awareness of the region’s potential.

The Dubai government has unveiled its plans 2022 to launch IPOs by 10-state owned companies as part of their strategy to double the size of the capital markets to around $820 billion and attract foreign investments.