DFM Company posts Dh103.8 million net profit in 2021

Dubai Financial Market (DFM) Company on Tuesday said its annual profit fell 24.72 per cent to Dh103.8 million last year from Dh137.9 million in the corresponding period of 2020. However, the company recorded a 269 per cent growth in net profit during the fourth quarter of 2021 as it earned Dh65.7 million compared to Dh17.8 million in the same period of the previous year due to government initiatives and reforms to boost liquidity in the market.

In a statement, the Dubai-listed company said its total revenues dropped to Dh294.6 million last year from Dh337.2 million in the corresponding period of 2020, reflecting a decline of 12.63 per cent. The total revenue comprised Dh213 million operating revenues and Dh81.6 million investment revenues and others.

“In the October-December 2021 quarter, the company’s total revenue increased by 68 per cent to Dh111.5 million compared to Dh66.2 million in the same quarter previous year,” the statement said.

The DFM Company has successfully reduced its 2021 expenses by four per cent, or Dh8.5 million, to Dh190.8 million compared to Dh199.3 million in 2020, it added.

The company’s board of director, during a meeting on Monday, reviewed and approved the annual results and recommended distributing a three percent cash dividend to the shareholders equivalent to Dh240 million.

‘New chapter’ in DFM’s history

Helal Al Marri, chairman of the DFM Company, said the year 2021 ushered in a ‘new chapter’ in DFM’s momentous journey.

“We deeply believe that DFM’s prospects and ability to achieve sustainable growth remain promising owing to the leadership’s vision and the numerous initiatives announced during the past few months by the Higher Committee for Development of Financial Markets,” he said.

Evaluating the market performance in 2021, Al Marri said the DFM General Index witnessed an increase of 28.2 per cent — the highest since 2013, while trading value increased 10.2 per cent to Dh72.3 billion compared to corresponding period in 2020.

Market capitalisation surges

The market capitalisation of listed securities has increased 20.5 per cent to Dh411 billion. The DFM ended the year with a strong note as trading value jumped 126 per cent during the fourth quarter to Dh33.6, equivalent to 46.5 per cent of the full-year trading value.

“Our confidence stems from DFM’s world-class infrastructure and regulations and its demonstrated business excellence. These factors jointly position DFM to endure its dynamic role and sustain growth and its active contribution in efforts aimed at strengthening Dubai’s status as a capital markets hub globally,” Al Marri said.

In 2021, foreign investors maintained their strong presence with a 45.8 per cent market share of DFM’s trading value. They were also net buyers of Dh1.9 billion, and their ownership of the market capitalisation reached 22.5 per cent at the end of the year. Similarly, institutional investors accounted for 45.8 per cent of trading activity with a net purchase of Dh656 million.

The DFM has attracted 7,342 new investors, including 677 institutions, bringing its investor base at the end of 2021 to 852,212 investors from 209 nationalities. Foreign investors accounted for 63 per cent of the new investors (4,626).

— muzaffarrizvi@khaleejtimes.com