How will new market-making services boost DFM trading?

Dubai: Investors trading shares on the Dubai Financial Market (DFM) could benefit from improved liquidity, more efficient pricing and smoother transactions following the launch of new market-making and liquidity provision services by EFG Hermes UAE LLC.

The move is expected to support trading activity by making it easier for investors to buy and sell shares, particularly in securities where trading volumes may be limited.

EFG Hermes UAE, a Capital Market Authority-regulated financial entity, announced on Monday that it had introduced the services as part of its expansion in the UAE’s capital markets.

What this mean for investors

Market makers help maintain trading activity by continuously offering prices at which they are willing to buy and sell securities. This can reduce the gap between buying and selling prices, known as the bid-ask spread, while improving the availability of shares for trading.

For retail investors, greater liquidity can potentially mean faster transactions and lower trading costs. Institutional investors may also benefit from improved execution when dealing in larger volumes.

However, the actual benefits will depend on market conditions and the securities covered by the service.

Strengthening Dubai’s financial market

The new service forms part of DFM’s Market Maker programme, which seeks to improve market depth, encourage orderly trading and strengthen investor confidence.

Khalifa Rabba, Chief Operating Officer of Dubai Financial Market, welcomed the development.

“We welcome EFG Hermes as a market maker on DFM, an addition that reflects the continued evolution of the market’s ecosystem and the growing role of institutional liquidity provision in supporting efficient trading. The firm’s participation supports continuous two-sided pricing across DFM-listed securities, enhancing liquidity, improving execution quality, and reinforcing Dubai’s position as a leading capital markets hub.”

The initiative also aims to make DFM-listed companies more accessible and attractive to regional and international investors.

Focus on trading efficiency

Ahmed Waly, Global Head of Brokerage at EFG Hermes, said the introduction of market-making services represented an expansion of the company’s trading capabilities.

“As the region’s leading brokerage firm, our overarching priority is to continuously elevate execution quality and market efficiency for our global and regional clients. Launching market making and liquidity provision services on the DFM represents a strategic evolution of our platform. By pairing advanced execution technology with our deep regional footprint to deepen market depth, support efficient price discovery, and enhance liquidity, we are ultimately helping reinforce the UAE’s position as a premier global capital markets hub.”

Amr ElShamy, Head of Electronic Trading and Execution Services at EFG Hermes, highlighted the importance of technology in ensuring reliable and efficient trading.

He said the company’s electronic trading infrastructure was designed to support continuous two-sided pricing for institutional and retail investors.

Attracting more investors

Raymond Wasef, Head of Market Making and Liquidity Provision at EFG Hermes, said deeper and more liquid markets could encourage greater investor participation.

The company expects its new services to complement its existing brokerage, investment banking, research and capital markets operations.

The launch comes as Dubai continues efforts to deepen its capital markets, attract international investment and strengthen its position as a global financial centre.