Dubai Financial Market Reports 124% Surge in Net Profit to Dh329.4 Million
Dubai Financial Market (DFM) has declared a robust financial performance for the fiscal year ending December 31, 2023, with a net profit of Dh329.4 million, marking a significant 124% increase from the previous year's Dh147.1 million. The surge is attributed to increased trading activities, capital inflow, and a notable influx of new investors. The DFM General Index grew by 21.7%, and the market capitalization increased by 18% to Dh688 billion. The company also played a pivotal role in elevating the IPO landscape and introduced sustainable financing initiatives.
DFM's Financial Highlights
1. Profit Surge and Dividend Proposal - The net profit for 2023 soared to Dh329.4 million, reflecting a substantial uptick in trading activities and an influx of new investors. The Directors proposed a cash dividend of Dh280 million, representing 3.5% of the capital and 95% of total retained earnings available for distribution.
2. Market Performance and Revenue Growth: The DFM General Index witnessed a growth of 21.7%, while the total revenues for 2023 reached Dh541.6 million, a 54% increase from the previous year's Dh351.2 million. Operating income contributed Dh346.2 million, and investment returns and other income accounted for Dh195.4 million.
3. Operational Expenses: Overall expenses rose to Dh212.2 million compared to Dh204.1 million in the corresponding period in 2022. However, the robust financial performance outweighs the incremental expenses.
4. Quarterly Performance: In the fourth quarter of 2023, DFM recorded a net profit of Dh143.2 million, compared to Dh58.1 million in the same period of 2022. The total revenue for the period reached Dh204 million, surpassing the Dh113.4 million reported in Q4-2022.
Strategic Initiatives and Achievements
1. IPO Success DFM emerged as a premier market for IPOs, listing Dubai Taxi Company and Al Ansari Financial Services, the first family-owned company. The IPOs raised Dh1.97 billion, with an oversubscribed value of Dh163 billion, establishing DFM as a benchmark for index performance.
2. Sustainable Financing: DFM ventured into sustainable financing initiatives, launching the carbon credit trading pilot program at COP28. This initiative aligns with the 2050 sustainability goals and underscores DFM's commitment to driving positive environmental impact through innovative programs.
3. Market Capitalization Growth: The market capitalization of DFM experienced substantial growth, rising from Dh582 billion at the end of 2022 to Dh688 billion at the end of 2023. The sector distribution reflects Dubai's GDP mix, with financials at 41%, utilities at 22%, real estate at 17%, industrials at 15%, and communication services at 3.4%.
4. Trading Value and Market Accessibility: DFM concluded the year with a 12% increase in trading value to Dh101 billion compared to 2022. The introduction of the omnibus accounts structure enhances market accessibility for international investors, providing access to a diverse portfolio.
Leadership Perspectives and Future Ambitions
Helal Al Marri, Chairman of DFM, highlighted the market's achievements in aligning with Dubai's economic agenda and emphasized the commitment to agility and flexibility. Hamed Ali, CEO of DFM and Nasdaq Dubai, underscored the robustness of DFM's operational framework and its strategic positioning for continuous growth.
The financial results position DFM as a pivotal player in Dubai's economic landscape, contributing to the city's global financial standing. As the company navigates through the evolving market dynamics, its focus on innovation, sustainability, and adaptability remains central to future success.
For More Related Updates Please Visit Our Official Website
By- Sahiba Suri
Comments