DFM posts 30% rise in Q1 net profit on increase in new investors

Net profit for the quarter ended on March 31 increased to $9.7 million

DFM's total revenue grew by almost 13 per cent to $24.2 million last quarter. Chris Whiteoak / The National

The Dubai Financial Market has reported a nearly 30 per cent increase in its first-quarter net profit as the stock exchange attracted new investors in the January-March period.

Net profit for the quarter ending March 31 increased to Dh35.6 million ($9.7 million), the DFM said in a bourse filing on Thursday.

Total revenue grew by almost 13 per cent to Dh88.9 million last quarter. It comprised Dh47.4 million of operating income and Dh41.5 million of investment returns and other income.

“We have started the year on a strong note. Our unwavering commitment to our investors, stakeholders and customers has enabled us to navigate through a challenging environment and achieve growth,” DFM chairman Helal Al Marri said.

In the previous quarter, DFM attracted 14,635 new investors, 78 per cent of whom were foreign investors. It lifted its investor base to more than 1.18 million, representing 215 nationalities.

In 2021, Dubai announced plans to list 10 state-owned companies and boost the size of the emirate's financial market to about Dh3 trillion.

The emirate also announced a Dh2 billion market maker fund to encourage the listing of more private companies from sectors such as energy, logistics and retail.

Dubai recorded several listings last year and accounted for 40 per cent of initial public offering activity in the Gulf Co-operation Council, Sheikh Maktoum bin Mohammed, Deputy Prime Minister, Minister of Finance and Deputy Ruler of Dubai, said this year.

Meanwhile, DFM’s trading value reached Dh19 billion and market capitalisation increased 2.4 per cent to Dh596 billion from its level at the end of last year, DFM said. Institutional investors accounted for nearly 68 per cent of trading value.

The DFM General Index also advanced by 2.1 per cent.

“These results are testament to the hard work and dedication of our team and the resilience of our business … we remain focused on delivering long-term value … we look forward to the future with confidence, and we remain committed to delivering sustainable value to all our stakeholder,” Mr Al Marri said.

The exchange’s total expenses increased 4.3 per cent on an annual basis to Dh53.3 million in the last quarter.

Foreign investors’ market share stood at 56 per cent of trading value during the first quarter. Their ownership reached 19 per cent of the market capitalisation at the end of March, Mr Al Marri said.

Last month, DFM and the Dubai Chamber of Commerce also launched a programme to help regional private businesses grow and list on the local bourse.

The IPO accelerator programme, backed by 20 regional and global advisers, will begin next month.