Dubai Financial Market (DFM) posted a net profit before tax of Dh195.4 million for the six months ended June 30, 2024, marking a significant 74 per cent increase over last year, on an increase seen in trading activity, higher trade values, and new investors.
DFM’s total consolidated revenue rose by 40 per cent to Dh305.7 million in the first half of 2024, up from Dh218.1 million in the same period of 2023. The revenue includes Dh154 million from operating income and Dh151.7 million from investment returns and other income. For the same period, the total expenses excluding tax increased to Dh110.3 million compared to Dh106 million in H1 2023.
Commenting on DFM’s performance, Helal Saeed Al Marri, Chairman of DFM, said: "We are proud to report a robust performance in the first half of 2024, reflecting the solid foundation we've built."
The first half of 2024 saw a significant boost in trading activity on the DFM, with the total number of trades reaching 1.07 million, reflecting a 22 per cent increase compared to the same period in the previous year. Additionally, the total trading value rose by 4 per cent to Dh48 billion. The DFM General Index declined marginally by 0.73 per cent.
Expanding investor base
In the first half of 2024, DFM attracted 72,583 new investors, 85% of which majority are from foreign countries. Institutional investors were particularly active, accounting for 66% of the trading value, with net purchases by foreign investors totaling AED 1.2 billion.
DFM achieved remarkable success in H1 2024, with its IPO listings, In March, Dubai's parking operator Parkin surged over 30% upon its public debut, achieving an unprecedented oversubscription level of approximately 165 times for all tranches combined, a record for the exchange.
In May, Spinneys, a premium grocery retail operator, also went public with its offering oversubscribed by 64 times. The offering saw significant interest from retail investors, with the UAE Retail Offering being increased consequently.
Market capitalization of DFM listed companies stands at Dh679 billion in H1 2024. Reflecting Dubai’s diverse GDP mix, the sector distribution by market capitalization stands as follows: Financials at 42 per cent, Utilities at 20 per cent, Real Estate at 18 per cent, Industrials at 13 per cent, Communication Services at 4 per cent, with other sectors, including Consumer Staples, making up the remainder. This highlights the potential to attract more companies from underrepresented sectors, further enhancing the depth and diversity of DFM's market offerings.
