DFM posts 63% growth in net profit of H1 2022 to Dhs63.4 million

The Dubai Financial Market (DFM) has announced its consolidated financial results for the first half of the year ended 30th June 2022, posting a 63% increase in its net profit to Dhs63.4 million compared to Dhs38.8 million during the corresponding period of 2021.

The net profit of the second quarter of 2022 increased by 134% to Dhs35.9 million compared to Q2- 2021’s level of Dhs15.3 million.

The Company’s total consolidated revenue reached Dhs163.8 million in H1-2022 compared to Dhs136.6 million during H1-2021. The revenue comprised of Dhs121.4 million of operating income and Dhs42.4 million of investment income & others.

The Company’s expenses amounted to Dhs100.4 million compared to Dhs97.8 million recorded during H1-2021. During the second quarter of 2022, the Company’s revenue reached Dhs85.2 million compared to Dhs63.2 million in the second quarter of 2021, while expenses amounted at Dhs49.3 million compared to Dhs47.9 million during Q2-2021.

Commenting on the announcement, Helal Al Marri, DFM Chairman, said, “The DFM has witnessed a positive performance driven by the increasing interest from various market participants and the deep confidence in its prospects in light of the accelerating steps to implement Dubai’s financial markets development strategy. During the first half, the DFM welcomed the listing of (DEWA), the largest initial public offering in the UAE financial markets’ history.

“Additionally, our product diversification strategy gained further momentum by launching trading of Oman Crude Oil Futures as well as new equity futures contracts. The first half also witnessed the accomplishment of key initiatives to develop the regulatory framework through the introduction of the listing and trading rules of cooperatives and special purpose acquisition companies (SPAC), which strengthens DFM ability to attract more listings and diversify investment opportunities.”

Al Marri added that the total trading value increased by 75% during the first half of 2022 to Dhs49.4 billion from Dhs28.2 billion during the same period of the year 2021, while the total market capitalisation of listed securities increased 28.2% to Dhs527 billion compared to end of 2021 level of Dhs411 billion.

The DFM maintained its attractiveness to international investors, who accounted for 47% of its trading value during the first half with net purchases of Dhs2.6 billion and their ownership reached to 19.8% of the total market capitalisation by the end of June 2022.

The institutional investors accounted for 53.6% of the trading value, which reflects local and international investors’ confidence in the market.

DFM has attracted 70,432 new investors during the first half of this year compared to 1,842 investors, up 38 times compared to its level at the end of the corresponding period of last year, bringing total number of investors to 921,550 investors from 212 countries at the end of June 2021. International investors accounted for 72% of the new investors. Additionally, the DFM has onboarded 426 new institutional investors during the first half, including 303 foreign institutions.

The Dubai Financial Market last month held a roadshow in London. The Dubai Financial Market International Investor Roadshow 2022 has successfully attracted numerous leading global investment institutions. The event conveyed a strong message on the profound confidence of international investors towards Dubai financial markets’ prospects as well as their enthusiasm to take their robust presence steps farther in the future.

The Roadshow was organised in collaboration with HSBC on 9th and 10th June 2022, with the participation of 9 equity and debt issuers on Dubai capital markets namely; Dubai Electricity and Water Authority (DEWA), Dubai Islamic Bank, Emaar Properties, Emaar Development, Emirates NBD, DP World, Amanat, Aramex, and DFM Company.

The event included 162 One-on-One meetings with senior representatives of 56 international funds managing more than $2 trillion of assets.

Hamed Ali, CEO of DFM and Nasdaq Dubai, commented, “International investors are actively participating in our market maintaining nearly 52 percent of trading activity and 23 per cent of ownership. On the other hand, our listed companies are increasingly opening up to foreign investors. For instance, Aramex recently allowed 100 percent foreign ownership. These positive indicators and initiatives strengthen Dubai capital markets position at the forefront of the most welcoming and receiving of foreign investments in the region.

The success of the roadshow as shown by number of institutions and meetings, is also another testament on the robust demand as Dubai accelerates steps to implant its ambitious strategy to develop financial markets and provides further impetus to our constant efforts to invigorate trading activities and attract more local and international investments.”