DFM announces 74% rise in pre-tax profit

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Dubai Financial Market (DFM) announced its consolidated financial results for the first half of the year, ending June 30. DFM said, the H1 2024 was marked by an increase in trading activity, higher trade values, and a wave of new investors. 

Its net profit before tax grew to Dhs195.4m, marking a 74 per cent increase over the same period in 2023.

Commenting on DFM’s performance, Helal Saeed Al Marri, chairman of DFM, said, “We are proud to report a robust performance in the first half of 2024, reflecting the solid foundation we’ve built. 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.

Earnings report

DFM’s total consolidated revenue rose by 40 per cent to Dhs305.7m in the first half of 2024, up from Dhs218.1m in the same period of 2023. The revenue includes Dhs154m from operating income and Dhs151.7m from investment returns and other sources, said the market operator in its earnings report.

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 per cent increase compared to the same period in the previous year.

Additionally, the total trading value rose by 4 per cent to Dhs48bn, however, the DFM General Index saw a marginal negative growth of 0.73 per cent.

Expanding investor base

In the first half of 2024, DFM said that 72,583 new investors chose the bourse, 85 per cent of which majority are from foreign countries.

Institutional investors were particularly active, accounting for 66 per cent of the trading value, with net purchases by foreign investors totaling Dhs1.2bn.

Successful IPO listings on DFM

DFM said it “achieved remarkable success in H1 2024, with its IPO listings.” 

In March, Dubai’s public parking operator Parkin surged over 30 per cent upon its public debut, achieving an oversubscription level of approximately 165 times for all tranches combined, a record for the exchange.

In May, Spinneys, a premium grocery retail operator, also went public with its offering oversubscribed by 64 times. The offering saw significant interest from retail investors. 

Market capitalisation

Market capitalisation of DFM listed companies stands at Dhs679bn in H1 2024, as per the report.

Reflecting Dubai’s diverse GDP mix, the sector distribution by market capitalisation stands as follows: financials at 42 per cent, utilities at 20 per cent, real estate at 18 per cent, industrials at 13 per cent, communication services at 4 per cent, with other sectors, including consumer staples, making up the remainder. 

This highlights the potential to attract more companies from underrepresented sectors, further enhancing the depth and diversity of DFM’s market offerings.

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