DFM is GCC's best-performing stock market for second straight year

Dubai: The Dubai Financial Market hit multiple highs during 2024 – not least having 50% of the overall trading value for the year driven by foreign investors. This is compared to the 47% foreign investor buy in during 2023.

In fact, overseas investors made up a staggering 85% of the 138,262 new investors that signed up to buy and sell stock on DFM in 2024, helping the Dubai entity retain the position of being the most active Gulf stock market for a second straight year.

Clearly, IPOs from the likes of Dubai’s parking space operator Parkin, the grocery retailer Spinneys, and the food delivery platform Talabat were a major factor in getting those new investors in.

DFM raised Dh10.48 billion through the three IPOs in 2024.

Take all of this with a ‘notable surge’ in activity from institutional investors, with their ‘rising sharply to 65% compared to 58% in 2023’. All adding up to Dubai stock market’s ‘strong appeal for a broadening and increasingly diverse investor base’.

DFM’s Board of Directors has proposed Dh256 million as 2024 dividend, representing 3.2% of its capital and 97% of the total retained earnings available for distribution.

 That's against Dh280 million paid out for 2023, representing 3.5% of the capital and 95% of the total retained earnings available for distribution.

According to Hamad Ali, CEO of DFM, “The success of landmark IPOs in 2024, coupled with increased trading activity and foreign participation, reinforces Dubai’s appeal as a preferred destination for companies and investors worldwide. Moving forward, we remain focused on creating a transparent and innovative marketplace to drive future growth.”

For DFM, a Dh1 trillion market cap is closer on the horizon after it finished 2024 at Dh 907 billion, a 32% rise from Dh688 billion in 2023.

The average daily trading value (ADTV) increased by 5%, to Dh423 million, while total traded value grew by 5.5% to Dh107 billion.

A clear sign of all those new investors putting their funds and stock picking strategies to work.

The DFM General Index surged 27.1%, closing 2024 on 5,158.67 — which is its highest level since September 2014.

"This impressive index growth represents the largest annual gain in three years and continues DFM’s upward trajectory for the fourth consecutive year," said a statement.

It was in April 2022 that the new boom phase for DFM was launched, with the DEWA IPO and the subsequent privatization moves by other leading Dubai government entities.

When it comes to 2024 revenues, DFM booked revenues of Dh632.3 million for 2024, a15.5% gain on the year before. This includes Dh353.1 million in operating income and Dh279.2 million via investment returns and other income.

Net profit for the year gone by was Dh376.3 million from Dh329.5 million in 2023.