DFM posts 63% growth in first-half net profit

The Dubai Financial Market (DFM) has recorded a 63 per cent increase in its net profit to Dh63.4 million compared to Dh38.8 million during the corresponding period of 2021.

The net profit of the second quarter of 2022 increased by 134 per cent to Dh35.9 million compared to second-quarter 2021’s level of Dh15.3 million.

The company’s total consolidated revenue reached Dh163.8 million in first half of 2022 compared to Dh136.6 million in the same period last year. The revenue comprised of Dh121.4 million of operating income and Dh42.4 million of investment income and others.

The company’s expenses amounted to Dh100.4 million compared to Dh97.8 million recorded during the first half of 2021. During the second quarter of 2022, the company’s revenue reached Dh85.2 million compared to Dh63.2 million in the second quarter of 2021, while expenses amounted at Dh49.3 million compared to Dh47.9 million during the second quarter of 2021.

Helal Al Marri, DFM chairman, said the DFM has witnessed a positive performance driven by the increasing interest from various market participants and the deep confidence in its prospects in light of the accelerating steps to implement Dubai’s financial markets development strategy.

"During the first half, the DFM welcomed the listing of (Dewa), the largest initial public offering in the UAE financial markets’ history. Additionally, our product diversification strategy gained further momentum by launching trading of Oman Crude Oil Futures as well as new equity futures contracts," he said.

Al Marri said the first half also witnessed the accomplishment of key initiatives to develop the regulatory framework through the introduction of the listing and trading rules of cooperatives and special purpose acquisition companies (SPAC), which strengthens DFM ability to attract more listings and diversify investment opportunities.

He said that the total trading value increased by 75 per cent during the first half of 2022 to Dh49.4 billion from Dh28.2 billion during the same period of the year 2021, while the total market capitalisation of listed securities increased 28.2 per cent to Dh527 billion compared to end of 2021 level of Dh411 billion.

The DFM maintained its attractiveness to international investors, who accounted for 47 per cent of its trading value during the first half with net purchases of Dh2.6 billion and their ownership reached to 19.8 per cent of the total market capitalisation by the end of June 2022.

The institutional investors accounted for 53.6 per cent of the trading value, which reflects local and international investors’ confidence in the market.

DFM has attracted 70,432 new investors during the first half of this year compared to 1,842 investors, up 38 times compared to its level at the end of the corresponding period of last year, bringing total number of investors to 921,550 investors from 212 countries at the end of June 2021.

International investors accounted for 72 per cent of the new investors. Additionally, the DFM has onboarded 426 new institutional investors during the first half, including 303 foreign institutions.

— muzaffarrizvi@khaleejtimes.com