Dubai Financial Market (DFM) performed exceptionally well by posting a net profit before tax of Dh195.4 million for the six months ended June 30, 2024. There was a significant 74 per cent increase over last year, an increase seen in trading activity, higher trade values, and new investors.
There was a marked increase in the consolidated revenue of DFM which 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 break up 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 enthused, “We are proud to report a robust performance in the first half of 2024, reflecting the solid foundation we’ve built.”
There was an increase in the trading activity on the DFM during the first half of 2024 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.
Increased investor base
There was an increase in DFM’s investor base during the first half of 2024 which stood at 72,583, with over 85% from the 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.
In March DFM achieved remarkable success in H1 2024, with its IPO listings. 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.
Another success story was in May when Spinneys, a premium grocery retail operator, went public with its offering oversubscribed by 64 times. There was a great 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. This reflects Dubai’s diverse market mix and sector wise mix of 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 whereas other sectors like consumer Staples plus a few others making up the remainder.
