DFM profit rises 43% as foreign investors drive Dh61b trading surge

Foreign investors made up 79% of new registrations in Q1 2026

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Traders at the Dubai Financial Market (DFM)
Traders at the Dubai Financial Market (DFM).
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Dubai: Dubai Financial Market reported a strong start to 2026, with average daily trading value crossing Dh1 billion in the first quarter as foreign and institutional investors continued to deepen their participation in the emirate’s capital market.

Average daily trading value rose 56% year on year to Dh1.03 billion in the three months to March 31, compared with Dh663 million in the same period last year. Total traded value increased 48% to Dh61 billion, from Dh41.12 billion a year earlier.

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The exchange attracted 20,702 new investors during the quarter, compared with 19,366 in the same period last year. International investors accounted for 79% of new registrations, while foreign investors contributed 54% of total trading value. Institutional investors represented 70% of total trading activity, reflecting the continued shift toward deeper and more diversified participation on the market.

Market capitalisation stood at Dh897 billion at the end of March.

Profit rises on higher activity

DFM’s consolidated revenue rose 36% year on year to Dh253.1 million in the first quarter, supported by higher trading activity and stronger liquidity. The total included Dh171.9 million in operating income and Dh81.2 million from investment returns and other income.

Net profit before tax increased 43% to Dh193.3 million, compared with Dh134.9 million in the first quarter of 2025. Expenses excluding tax stood at Dh59.8 million, up from Dh51.6 million a year earlier.

Helal Saeed Al Marri, Chairman of DFM, said the performance reflected continued confidence in Dubai’s capital markets.

“DFM delivered a strong first quarter, with trading activity and investor participation reflecting continued confidence in Dubai’s capital markets. Exceeding Dh1 billion in average daily trading value is an important milestone and demonstrates the growing depth, liquidity and international relevance of the market,” he said.

He added that the sustained participation of institutional and international investors reflected confidence in DFM’s platform and Dubai’s long-term capital markets strategy.

Liquidity holds despite softer March

Trading momentum was strongest during January and February, with the DFM General Index reaching 6,774 points on February 9. The index later closed the quarter 10.1% lower, reflecting softer market conditions in the latter part of March.

Activity, however, remained strong across the quarter, supported by continued participation from retail, institutional, local and international investors.

Hamed Ali, CEO of DFM and Nasdaq Dubai, said liquidity increased significantly year on year, with average daily trading value rising to Dh1.03 billion and total traded value reaching Dh61 billion.

“Q1 2026 demonstrated the resilience and depth of activity across DFM. Liquidity increased significantly year-on-year, with average daily trading value rising to Dh1.03 billion and total traded value reaching Dh61 billion. This was supported by strong participation from institutional, retail, local and international investors,” he said.

He added that DFM continued to operate with stability and efficiency, supported by a diversified investor base and sustained international participation.

Focus stays on access and infrastructure

DFM said it remains focused on widening market access, expanding its investor base and strengthening the infrastructure that supports Dubai’s position as an international financial centre.

Ali said the exchange’s priority is to enhance market accessibility, strengthen infrastructure and broaden the range of opportunities available to issuers and investors.

“The performance of the first quarter reinforces the strong foundations of Dubai’s capital markets and DFM’s ability to continue supporting long-term market development,” he said.

Nivetha Dayanand is Assistant Business Editor at Gulf News, covering aviation, financial markets and commodities. A business and financial journalist with a strong interest in multimedia storytelling, she regularly takes complex financial and economic subjects beyond the written word, producing explainer videos that make them easier for a wider audience to understand. Nivetha has interviewed senior policymakers, business leaders and global financial figures both on and off camera. Her past guests include UAE Minister of Economy and Tourism Abdulla bin Touq Al Marri, Khaled bin Alwaleed Al Saud, a member of the House of Saud and the founder and CEO of KBW Ventures, Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund and Indian ministers Hardeep Singh Puri and N. Chandrababu Naidu. She has also hosted and moderated panels, conferences and awards shows, bringing her newsroom experience to live conversations on business, finance and the economy. An Erasmus Mundus journalism alum, Nivetha is drawn to stories that affect people directly and to reporting that gives a platform to voices that might otherwise go unheard. She was among the first journalists to speak to Petrofac employees in the UAE about unpaid salaries, broke the news of the planned demolition of Dubai’s well-known “Toyota Building”, and helped set the record straight on widely circulated claims that a giant replica of the Moon was coming to Dubai. More recently, her exclusive interview with EDGE Group CEO Hamad Al Marar revealed how the UAE-based defence group deployed its systems along the country’s shore border and established a geofence around the UAE within 48 hours of the February 28 escalation. Prior to joining Gulf News, Nivetha worked at ITP Media, where she helped launch Finance Middle East, a new publication covering the region’s financial sector. Her role spanned reporting and editing, video production, interviews and events. Across print, digital, and video, she focuses on finding the people behind business stories and explaining why those stories matter to the audience reading or watching them.

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