Dubai Financial Market announces 74% increase in pre-tax net profit in H1 2024

(MENAFN – Khaleej Times) Dubai Financial Market (DFM) on Monday announced that its net profit before tax rose to Dh195.4 million for the period ended June 30, 2024, a significant increase of 74 per cent compared to the same period in 2023.

The first half of 2024 saw an increase in trading activity, higher transaction values ​​and a wave of new investors.

DFM’s total consolidated revenue rose 40 per cent to Dh305.7 million in the first half of 2024, compared with Dh218.1 million in the same period of 2023. The revenue includes Dh154 million from operating income and Dh151.7 million from returns on investments and other income. During the same period, total expenses excluding tax rose to Dh110.3 million, compared with Dh106 million in the first half of 2023.

The first half of 2024 saw a significant increase in trading activity on DFM, with the total number of transactions reaching 1.07 million, up 22 per cent compared to the same period last year. In addition, the total value of transactions increased by 4 per cent to Dh48 billion. The DFM Overall Index fell slightly by 0.73 per cent.

Expanding investor base

In the first half of 2024, DFM attracted 72,583 new investors, 85% of whom came from abroad. Institutional investors were particularly active, accounting for 66% of the turnover value, while net purchases by foreign investors totalled Dh1.2 billion.

DFM has enjoyed remarkable success in the first half of 2024 with its IPOs. In March, Dubai car park operator Parkin surged by more than 30 per cent following its IPO, reaching an unprecedented oversubscription level of around 165 times for all tranches combined, a record for the exchange. In May, premium food retailer Spinneys also went public and its IPO was oversubscribed 64 times. The IPO attracted significant interest from retail investors, boosting the retail offering in the UAE.

The market capitalization of DFM-listed companies in the first half of 2024 was AED 679 billion. Reflecting Dubai’s diverse GDP structure, the sector breakdown by market capitalization is as follows: financials at 42 percent, utilities at 20 percent, real estate at 18 percent, industrial at 13 percent, communication services at 4 percent, and other sectors, including consumer staples, making up the rest.

Helal Saeed Al Marri, Chairman of DFM, said: “We are proud to report solid results in the first half of 2024, reflecting the solid foundation we have built. The success of our Capital Market Summit underlines our commitment to fostering a dynamic marketplace that encourages global dialogue and collaboration. We will continue to deliver value to our stakeholders by focusing on innovation, strengthening our infrastructure and diversifying our service and product offerings. These efforts reinforce the position of the exchange as a leading financial market in the region, solidifying Dubai’s position as a key player on the global financial scene.”

Hamed Ali, CEO of DFM and Nasdaq Dubai, said: “DFM’s continued growth in the first half of 2024 is a testament to our strategic initiatives and the confidence of our investors. Our commitment to innovation is creating new opportunities for both companies and investors, as exemplified by the announcement of ARENA and the enhanced iVestor application. The success of public listings by both government and private entities underscores the depth and resilience of our markets. Furthermore, the growth of our foreign investor base can be attributed to the success of our international roadshows, showcasing the global appeal and robust investment opportunities in Dubai’s financial markets. We look forward to continuing this momentum and unlocking new opportunities for our stakeholders.”

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