Dubai Financial Market operator nets Dh103.8m as 2021 net profit, helped by Q4 surge

Dubai: The Dubai Financial Market Co., operator of the Dubai stock exchange, has netted a profit of Dh103.8 million for 2021, bolstered by a fourth quarter profit surge of Dh65.7 million. The latter figure represents a 269 per cent spike from the corresponding Q4-2020 figures.

Total trading volumes at DFM were up 10.2 per cent last year to Dh72.3 billion. DFM will obviously be looking for multiples of that gain this year as it prepares to list a series of Dubai Government owned blue-chip companies, starting with the utility provider DEWA. This will usher in deep-seated reforms for Dubai’s financial markets, with the introduction of market making funds as well as more listings by private enterprises.

For 2021, the DFM Board has recommended a 3 per cent cash dividend to the shareholders equivalent to Dh240 million.

The Dubai market’s capitalization was up 20.5 per cent to Dh411 billion, and the efforts to broaden the investor base is getting results. Foreign investors now constitute 45.8 per cent of trading activity with net purchases of Dh1.9 billion. The DFM attracted 7,342 new investors during the year, including 4,626 international investors and 677 institutions.

According to Helal Al Marri, Chairman of DFM Company, “2021 ushered in a new chapter in DFM’s momentous journey. We deeply believe that DFM’s prospects and ability to achieve sustainable growth remains promising owing to leadership’s vision and the numerous initiatives announced during the past few months by the Higher Committee for Development of Financial Markets. Our confidence is also stemming from DFM’s world-class infrastructure and regulations as well as its demonstrated business excellence.”

The 2021 revenues came to Dh294.6 million compared to Dh337.2 million. While Dh213 million was generated via operating revenues, Dh81.6 million came in the form of investment revenues and others.

“DFM ended the year with a strong note as trading value jumped 126 per cent during the fourth quarter to Dh33.6 billion, equivalent to 46.5 per cent of the full year trading value,” said Al Marri. “These indicators are attributed to the continuous improvement of the national economy, the encouraging figures from key economic sectors such as tourism and real estate as well as the performance of listed companies. All of this was culminated by the positive effects of the strategic plan to develop Dubai’s financial markets.”