Dubai Financial Market Announces Impressive 74% Profit Rise In H1 2024

Dubai Financial Market (DFM) has released its consolidated financial results for the period ending 30th June 2024. The net profit before tax increased to AED 195.4 million, a notable 74 percent rise compared to the same period in 2023. This growth is attributed to higher trading activity, increased trade values, and a surge in new investors.

In the first half of 2024, DFM’s total consolidated revenue grew by 40 percent, reaching AED 305.7 million, up from AED 218.1 million in the same timeframe last year. This revenue comprises AED 154 million from operating income and AED 151.7 million from investment returns and other income. Meanwhile, total expenses excluding tax rose to AED 110.3 million from AED 106 million in H1 2023.

The first half of the year saw DFM attracting 72,583 new investors, with a significant majority (85 percent) being foreign nationals. Institutional investors played a crucial role, accounting for 66 percent of the trading value. Net purchases by foreign investors amounted to AED 1.2 billion during this period.

DFM hosted its annual roadshow in London in June, collaborating with HSBC’s GCC Exchanges Conference. The event showcased investment opportunities within Dubai's capital markets and featured presentations from 14 leading issuers with a combined market capitalisation of AED 326 billion. This edition facilitated over 270 interactions through 90 meetings.

In March, Dubai's parking operator Parkin made its public debut on DFM, surging over 30 percent and achieving an oversubscription level of approximately 165 times for all tranches combined—a record for the exchange. In May, Spinneys also went public with its offering oversubscribed by 64 times, drawing significant interest from retail investors.

Commenting on DFM’s performance, Helal Saeed Al Marri, Chairman of DFM, stated: "We are proud to report a robust performance in the first half of 2024, reflecting the solid foundation we've built. The success of our Capital Market Summit underscores our commitment to fostering a dynamic marketplace that encourages global dialogue and collaboration."

Market Initiatives Driving Growth

In May this year, DFM announced ARENA by DFM—an innovative platform designed to facilitate growth opportunities for both companies and investors through diverse assets including equity and debt. Additionally, DFM introduced an enhanced iVestor App aimed at empowering investors with advanced digital tools for financial management.

The first half of the year also saw an increase in trading metrics on DFM. The total number of trades reached 1.07 million—a rise of 22 percent compared to the same period last year—and total trading value increased by four percent to AED 48 billion despite a marginal decline of 0.73 percent in the DFM General Index.

Diverse Market Capitalisation

The market capitalisation of companies listed on DFM stood at AED 679 billion in H1 2024. Reflecting Dubai’s diverse GDP mix, sector distribution by market capitalisation includes Financials at 42 percent, Utilities at 20 percent, Real Estate at 18 percent, Industrials at 13 percent, Communication Services at four percent, with other sectors making up the remainder.

Hamed Ali, CEO of DFM and Nasdaq Dubai said: "DFM’s steady growth in the first half of 2024 is a testament to our strategic initiatives and the confidence of our investors." He added that their commitment to innovation is driving new opportunities for both companies and investors as exemplified by ARENA and the enhanced iVestor App.

The annual Capital Market Summit hosted by DFM attracted over a thousand global delegates this year. The event provided key insights into future finance trends and reinforced DFM's status as a leading global listing venue.

The increase in foreign investor base can be attributed to successful international roadshows showcasing robust investment opportunities within Dubai's financial markets.

The efforts put forth by DFM highlight its focus on innovation and infrastructure strengthening while fostering an inclusive financial ecosystem for all stakeholders.

With inputs from WAM