DFM’s Net Pre-Tax Profit Soar to $53.2 Million in H1-2024

Dubai Financial Market (DFM) has said that its net profit before tax grew to $53.2 million, in the first six months of this year marking a significant increase of 74% compared with the same period in 2023.

The first half of 2024 saw an increase in trading activity, higher trade values, and a wave of new investors. Additionally, DFM hosted the annual Capital Market Summit (CMS), attracting over 1,000 global delegates. The landmark event offered key insights into the future of finance, and underscoring DFM’s status as a leading global listing venue.

DFM Chairman Helal Saeed Al Marri said that DFM’s robust performance in H1 of 2014 reflected the solid foundation they have built over the years. The success of the CMS underscored their commitment to foster a dynamic marketplace that encouraged global dialogue and collaboration, he said.

“We will continue to deliver value for our stakeholders by focusing on innovation, strengthening our infrastructure, and diversifying our services and products offerings. These efforts reinforce the exchange’s position as a leading financial market in the region, solidifying Dubai’s stature as a key player on the global financial stage,” he added.

Revenue Grows

DFM’s total consolidated revenue rose by 40% to $83.23 million in the first half of 2024, up from $59.38 million during the corresponding period last year. This included $41.93 million from operating income and $41.3 million from investment returns and other income.

For the same period, the total expenses excluding tax increased to $30.03 million compared with $28.86 million in H1 of 2023.

The first half of 2024 saw a significant boost in trading activity on the DFM, with the total number of trades reaching 1.07 million, reflecting a 22% increase compared to the same period in the previous year. Additionally, the total trading value rose by 4% to $13.07 billion. The DFM General Index declined marginally by 0.73%.

Expanding Investor Base

DFM attracted 72,583 new investors, 85% of which were from foreign countries. Institutional investors were particularly active, accounting for 66% of the trading value, with net purchases by foreign investors totalling $330 million.

DFM hosted its annual roadshow in London in June this year, in collaboration with HSBC’s GCC Exchanges Conference. The event further highlighted investment opportunities within Dubai’s vibrant capital markets, featuring 14 leading issuers with a combined market capitalisation $88.76 billion.

IPO listings

DFM achieved remarkable success in H1 of 2024, with its IPO listings, In March, Dubai’s parking operator Parkin surged over 30% upon its public debut, achieving an unprecedented oversubscription level of approximately 165 times for all tranches combined, a record for the exchange.

Spinneys, a premium grocery retail operator, also went public with its offering oversubscribed by 64 times. The offering saw significant interest from retail investors, with the UAE Retail Offering being increased consequently.

Diverse Market Capitalisation

Market capitalisation of DFM-listed companies stood at $184.86 billion in H1 of 2024. Reflecting Dubai’s diverse GDP mix, the sector distribution by market capitalisation was Financials (42%), Utilities (20%), Real Estate (18%), Industrials (13%), Communication Services (4%), with other sectors, including Consumer Staples, making up the remainder.