KHALEEJ TIMES, Thursday, Nov 7, 2019 | Rabi Al Awwal 10, 1441
DFM Company posts Dh95.5M profit in first nine months of 2019
Dubai Financial Market Company on Wednesday announced its financial results for
the first nine months of the year ending September 30, registering a net profit
of Dh95.5 million, an 8 per cent decrease from Dh103.7 million from the same
period of 2018.
Net profit for the third quarter of the year increased 45 per cent to Dh30.4
million, compared to Dh20.9 million in the corresponding period of 2018.
Total revenue reached to Dh241.6 million during the nine months compared to
Dh251.9 million during the corresponding period of 2018. The revenue is
comprised of Dh133.9 million of operating income and Dh107.7 million of
investment returns. Company expenses reached Dh146.1 million by the end of
September 2019 compared to Dh148.2 million in the same period of 2018.
During the third quarter, the company's revenue reached Dh78.1 million compared
to Dh69.5 million in the third quarter of 2018, while expenses amounted to
Dh47.7 million in the same period compared to Dh48.6 million.
It is noteworthy that the total value of trading has decreased 17 per cent to
Dh39.5 billion during the first nine months of this year, while it has increased
29.5 per cent in the third quarter to 14.5 billion.
Essa Kazim, chairman of Dubai Financial Market Company, said: "The DFM's
performance has considerably improved during the third quarter of 2019 with a
29.5 per cent jump in trading value, which helped to a large extent to contain
the slow start of the first half. The DFM General Index up 10 per cent by the
end of September while the market capitalisation advanced 6.5 per cent to Dh367
billion. Consequently, we are looking forward to see further momentum
considering DFM's world-class infrastructure and lucrative opportunities
supported by the national economy's dynamism and good growth."
"During the first nine months of this year, the DFM has maintained its
attractiveness to foreign investors, as they have registered net purchases of
Dh2 billion. The market also attracted 1,121 new investors, lifting the total
number of its investor base to 844,245 investors," Kazim added.
Efforts to further
attract foreign investments
On the DFM's efforts to attract further foreign investments, Kazim said: "The
DFM has organised its international investors roadshows in New York and London
and both achieved significant success. The roadshows have delivered a strong
message on international institutions' confidence in the economic climate in
Dubai and the UAE as well as their robust appetite towards DFM-listed companies
and we are confident that this demand will boost the market activity in the
Robust presence of
foreign and institutional investments
The DFM maintains a strong presence of foreign and institutional investments as
institutions' ownership reached 83.4 per cent of the market capitalisation at
the end of September 2019 with 54.5 per cent share of trading. Similarly,
foreign investors are upholding their active participation with 47.6 per cent of
trading and 17.3 per cent ownership of the market capitalisation at the end of
the third quarter of 2019.
Expansion in DFM's
"As part of its efforts to provide various market participants with smart and
digital solutions, the DFM has launched 'myAccount' service during the third
quarter of this year. The new electronic account enables investors to seamlessly
transfer dividends amounts to their iVestor Card accounts, bank accounts as well
as to pay for IPOs and right issues subscription," Kazim said.
governance and sustainability initiatives
Additionally, the DFM's unceasing efforts to promote best practices of
environmental, social and governance and sustainability within the financial
markets sector have accelerated with the launch of its Sustainability Strategic
"The plan aims to underpin DFM's successes in this field by creating long-term
shared values for DFM stakeholders and ultimately positioning it as theregion's
leading sustainable financial market by 2025. The strategy's four pillars are
sustainability reporting and disclosures; sustainable investment education;
green products and listings; and gender balance and empowering people. Moreover,
the DFM is actively collaborating with various institutions to instill
sustainability and governance, in line with UAE Sustainable Development Goals
2030 and Dubai's Strategic Plan 2021, hence the DFM and the Dubai International
Financial Centre have jointly launched the 'Dubai Sustainable Finance Working
Group' in cooperation other 10 founding members," Kazim concluded.