DFM's third-quarter income triples on trading value and new investor boost

Bourse's market capitalisation hit $190 billion at the end of the first nine months of this year

Salik is among the state-owned enterprises that have listed their shares on the Dubai Financial Market. Chris Whiteoak / The National

The Dubai Financial Market reported an almost threefold jump in its third-quarter net income as trading value and the number of new investors rose.

Profit attributable to shareholders for the three months to the end of September climbed to Dh74.06 million ($20.18 million), from Dh25.64 million for the same period in 2022, the DFM said in a regulatory filing on Tuesday.

Trading commission fees for the June-September period jumped to Dh70.05 million, up from Dh41.08 million a year earlier.

Total income grew by more than 84 per cent on an annual basis to Dh137.91 million.

The rise in earnings underpins the bourse's “commitment to diversification and our forward-thinking initiatives to position DFM as the marketplace of choice for both investors and issuers”, its chairman Helal Al Marri said.

The DFM said its “notable increase” in the number of trades, overall trading value during the third quarter and influx of new investors reinforces Dubai’s position as a global financial centre.

The robust operational performance also drove the DFM’s net income for the first nine months to Dh186.2 million, up 109 per cent year on year.

The DFM’s total consolidated revenue increased by 48 per cent on an annual basis to Dh351.8 million, driven by Dh214.2 million in operating income and Dh137.6 million in investment returns and other income.

Total expenses during the first nine months climbed to Dh165.6 million, compared to Dh148.8 million during the same period of 2022.

The DFM, Dubai's main bourse, unveiled plans in 2021 to boost its size to Dh3 trillion and list 10 state-owned companies.

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

Several state-owned enterprises including utility Dubai Electricity and Water Authority, traffic toll operator Salik and free zone holding company Tecom have already listed their shares on the bourse.

Dubai-based family-owned company Al Ansari Financial Services also listed on the bourse this year.

The DFM's market capitalisation rose at the end of September to Dh697 billion, up from Dh576 billion in the same period in 2022.

The financial sector accounted for 41 per cent of the market capitalisation while utilities, real estate, industrials and communication services accounted for 23 per cent, 17 per cent, 14 per cent and 3 per cent, respectively, with others such as consumer staples making up the rest.

The Dubai Financial Market chief executive Hamed Ali. Photo: DFM

“With a significant increase in our trade numbers, expanding sector diversity and a surge in new investors, [the] DFM is well positioned to continue driving growth and innovation in the global financial landscape,” said Hamed Ali, chief executive of the DFM and Nasdaq Dubai.

“Our commitment to expanding our product verticals with the introduction of new asset classes, onboarding of digital brokers … and the launch of innovative programmes such as the IPO Accelerator underscores our dedication to strengthening the overall financial ecosystem.’’

The DFM said that the number of trades during the first nine months of the year rose to 1.43 million, a 37 per cent annual increase in trading activity.

Trading value rose by 13 per cent, year on year, to Dh78 billion as it attracted 35,357 new investors – 72 per cent of which were foreign investors – boosting the investor base to more than a million.