Dubai Financial Market reports Dhs112.2m half-year profit, up 77%

Dubai Financial Market (DFM) said its half-year profit surged by 77 per cent from a year earlier, driven by Al Ansari Financial Services’ (Al Ansari Exchange) initial public offering (IPO) and the increase in international investors following the exchange’s London roadshow.

The bourse net profit rose by 77 per cent to reach Dhs112.2m in the six months to June 30. DFM’s revenues soared 31 per cent year-on-year(YoY) to Dhs215.2m in the first half of 2023 compared to Dhs163.8 during the same period a year ago.

“Revenue includes Dhs128.6m in operating income and Dhs86.6m in investment returns and other income,” the Dubai bourse said in a statement. The company’s total expenses reached Dhs103m during the period under review, compared to Dhs100.4m in H1 2022.

This just in ?#DFM announced its financial results for the period ending June 30, 2023, reporting a net profit of AED 112.2 million, an increase of 77% from the same period last year.

? To read more about it, click https://t.co/pH7J0nc3ug pic.twitter.com/eBSl7Yqo2H

— Dubai Financial Market (@DFMalerts) July 28, 2023

DFM posted Dhs126.3m in quarterly revenues, compared to Dhs85.2m during the same period last year, while expenses reached Dhs49.7m for the period from Dhs49.3m in Q2 2022. The DFM General Index posted impressive growth of 14 per cent, closing at 3,972 points while market capitalisation soared by 12 per cent to Dhs652bn.

“Foreign investors maintained a strong presence, accounting for 48 per cent of the trading value during the first half of the year, with net purchases amounting to Dhs3.27bn,” Hamed Ali, CEO of DFM and Nasdaq Dubai said, adding that foreign investors’ share in market capitalisation reached 20 per cent by the end of June 2023.

DFM attracted 25,699 new investors in the first half of the year, 74 per cent of which were foreign investors. Institutional investors also had a significant share of 57 per cent of the trading value, with net purchases of Dhs630m.

“These impressive numbers demonstrate the confidence and strong interest of market participants in the lucrative trading and investment opportunities in Dubai capital markets. In addition, we have introduced omnibus accounts during this period, offering highly beneficial and diversified investment opportunities to our valued clients,” Hamed Ali added.

Al Ansari Exchange lists on DFM

Meanwhile, Al Ansari Exchange’s IPO on the DFM, the emirate’s first in 2023, demonstrated the continued appetite for GCC listings at a time when recession concerns, inflation and high-interest rates have damped investor sentiment in the global market.

“The measures implemented in the UAE (and particularly in Dubai) have, of course, had the desired effect of increasing not only the number of listings taking place on the DFM and ADX but also the international profile of those markets,” Zahir Sabur, senior associate, Global Corporate at Reed Smith tells Gulf Business.

“The Dubai Government’s initiative to IPO 10 of its state-linked assets has spurred significant liquidity into what was a relatively docile exchange and has encouraged others, such as the Al Ansari Family, to list equities on the DFM.”

Al Ansari sold 750 million shares in the offering, equivalent to 10 per cent of the company’s paid-up capital, to raise $210m.

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