Dubai Financial Market introduces ‘Omnibus Accounts’ for investors

The Dubai Financial Market (DFM) launched the Omnibus Accounts structure for holding securities as a gateway to accessing investment opportunities for eligible investors for the benefit of more than one beneficiary owner.

In a statement, Hamed Ali, CEO of DFM and Nasdaq Dubai, said, “The introduction of Omnibus Accounts is a key milestone in our endeavour to implement Dubai’s strategy to develop its capital markets. It enhances international investors’ access to our diversified investment opportunities.

“The availability of Omnibus Accounts also responds to the market accessibility and market quality requirements in the MSCI Market Accessibility Criteria, FTSE Quality of Markets Matrix and other international index providers.”

Regulated entities, that are eligible, can now open a unified account to hold and trade securities on behalf of numerous beneficial owners through a single investor number (NIN).

Meanwhile, Dubai Central Securities Depository (Dubai CSD), a subsidiary of DFM, has issued the rules for the accounts, which took effect on March 29.

It has also launched a registration process for interested eligible investors.

Omnibus Accounts – a key milestone to develop capital markets

Haneen Al Hammadi, general manager of Dubai CSD, stated, “As the first and only Central Depository in the UAE licensed by the Securities and Commodities Authority (SCA) to date, Dubai CSD, have been championing the need for a regulatory framework to facilitate the introduction of this important market infrastructure in the UAE to ensure that the nation’s capital market is on par with international peers.

“The Omnibus Accounts’ structure is a leap forward for certain market participants, particularly asset management companies, as it enables them to achieve operational and cost efficiencies.”

Rocio Echague, head of Securities Services, MENA (excluding Saudi) & UAE, HSBC, added, “The introduction of these accounts will allow for greater participation from investors into local markets. Investors can view an Omnibus Accounts structure as an economical way to structure custody assets as it delivers operating and cost efficiencies via reduced onboarding requirements and maintenance fees.”

This announcement follows the publishing of ‘Omnibus Accounts’ regulations by the Securities and Commodities Authority (SCA), which permits Central Securities Depositories (CSDs) to introduce their own respective rules and procedures for the accounts.

DFM – Press release – DFM introduces Omnibus Accounts to enhance market access https://t.co/cqGhMg7BZ0 pic.twitter.com/dIAUf15ykw

— Dubai Financial Market (@DFMalerts) March 29, 2023

Other highlights

In other news, DFM Company announced a 41.7 per cent rise in net profit – equalling Dhs147.1m – for the fiscal year ending December 31, 2022.

Net profit rose against Dhs103.8n registered in 2021.

Revenues for the year 2022 equated to Dhs351.2m, up 19 per cent compared to Dhs294.6m recorded in 2021.

Foreign investors contributed 48.7 per cent of trading activity with net purchases of Dhs5bn. Meanwhile, the DFM attracted 167,332 new investors, bringing its investor base to over one million from 212 nationalities.

Read: Dubai Financial Market Company posts 41.7% rise in net profit in 2022

Also read: Dubai’s DFM adds 20,552 new investor accounts in first seven months of 2022