Dubai Financial Market Posts Net Profit of AED 120.1 Million in the First Nine Months of 2020

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HE. Essa Kazim (002)

Dubai Financial Market Posts Net Profit of AED 120.1 Million in the First Nine Months of 2020

Dubai Financial Market Company (PJSC) today announced its financial results for the first nine months of the year ending 30 September 2020, registering a net profit of AED 120.1 million, a 26% increase from AED 95.5 million in the same period of 2019.

Net profit of the third quarter of the year 2020 increased 35% to AED 41.1million, compared to AED 30.4 million in the corresponding period of 2019.

Total revenue reached to AED 271 million during the nine months compared to AED 241.6 million during the corresponding period of 2019. The revenue is comprised of AED 175.2 million of operating income and AED 95.8 million of investment returns and other income. Company expenses reached AED 150.9 million by the end of September 2020 compared to AED 146.1 million in the same period of 2019. During the third quarter, Company’s revenue reached AED 89.8 million compared to AED 78.1 million in the third quarter of 2019, while expenses amounted to AED 48.7 million in the same period compared to AED 47.7 million.

Positive performance indicators

Commenting on the key developments during the first nine months of 2020, His Excellency Essa Kazim, Chairman of the Dubai Financial Market Company (PJSC) said: “The DFM’s trading value has increased by 28.3% to approximately AED 51 Billion, compared to the corresponding period of 2019. During the past three quarters, the trading value maintained steady growth registering 19%, 30% and 34.5% respectively compared to the corresponding periods of the previous year. The General Index advanced for the second consecutive quarter by 10%, following its 16% advance in Q2, restoring considerable percentage of its previous decline. This performance clearly indicates DFM’s resiliency in containing international markets’ volatility due to the repercussions of unprecedented circumstances triggered by the COVID-19 pandemic, with Additionally, the DFM has attracted 3194 new investors during the nine months. It also maintained its attractiveness to foreign investors with their market share reached to 51% of trading activity and to 18% of the market capitalization at the end of September 2020. International investors were also net buyers of AED 190 million at the end of the third quarter. Undoubtedly, these encouraging performance indicators underlines DFM’s superb business continuity arrangements as well as its ability to reap the benefits of UAE’s pro-active approach and stimulus packages, which enabled various economic sectors to weather the pandemic’s repercussions.”

Product offering diversification strategy gains further momentum

“During the third quarter, the DFM welcomed the listing of Chimera Capital’s ETF, in a significant step in line with DFM’s strategy to diversify asset classes providing investors with a new financial instrument. The DFM also launched its equity futures platform, which commenced trading last week.  We look forward to seeing this drive gaining further momentum with the listing of other asset classes such as REITs and expanding the equity futures platform, providing investors with diversified range of investment opportunities,” H.E. Essa Kazim added.

Key initiatives

“Earlier on the year, the DFM accomplished new key initiatives including the launch of Dubai Clear and Dubai CSD as independent companies for post-trade services, as part of DFM’s extensive efforts to enhance market structure and post trade services in line with international best practices. The DFM also accomplished the largest technology upgrade through its entire history by migrating to the Nasdaq Financial Framework (NFF). These initiatives further strengthen DFM’s technology and regulatory structures, business excellence and leading position in developing financial markets in the UAE and broader region,” H.E. Essa Kazim concluded.


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