Dubai: Dubai Financial Market (DFM) returned to the black in 2012 due to the constant improvement in the performance of the banking sector and recovery in real estate sector after suffering a loss in 2011.
The company recorded a net profit of Dh35.2 million last year compared to a net loss of Dh6.9 million in 2011.
The results, approved by the Board of Directors, will be ratified during the annual general meeting of the company that will be announced later on in coordination with the UAE Securities and Commodities Authority (SCA).
“Our efforts during 2012 have been focused on continuing the implementation of the strategy aimed at improving the company’s performance, efficiency and enhancing the shareholder’s value. In order to achieve this strategic vision, the company’s efforts were centred around five main objectives, including the development of market participants’ services to drive market activity, the monetisation of financial products, IPOs focused activities, infrastructural advancements based on international best practices and cost efficiency,” Abdul Jalil Yousuf Darwish, Chairman of Dubai Financial Market, said in a statement.
The company’s total revenues reached Dh191 million at the end of last year, compared to Dh176.5 million in 2011.
The chairman said the company is heading into a new phase of development due to the thriving economic climate in the UAE. Last year witnessed the beginning of recovery by the real estate sector as well as the constant improvement in the performance of the banking sector. These two sectors represent the key pillars for DFM.
The Dubai exchange signed 27 contracts for market data dissemination during 2012, an increase of 35 per cent compared to 2011. The revenue from market data sales to news agencies, television networks and local, regional and international data providers increased by 12 per cent during 2012.
“We have endeavoured to translate the strategic objectives into key deliverables through the implementation of various initiatives last year. We have also engaged in intensive and productive discussions with all stakeholders, including public and private entities, regulators, financial advisory firms and investment banks, with a view to enhance the efficiency of the capital market and promote its role in the national economy,” said Eisa Abdul Fattah Kazim, Managing Director and CEO of Dubai Financial Market.