Dubai Financial Market Company (PJSC) today announced its results for the financial year ending 31 December 2017, posting a net profit of AED 233 million, compared to AED 253.5 million in 2016, an 8% decline. Total revenues reached to AED 421.6 million in 2017 compared to AED 439.3 million in 2016. The total revenue comprised of AED 321.1 million of operational revenues and AED 100.5 million of investment revenues and others.
As for the fourth quarter of 2017, the total revenue of the Company decreased 17% to AED 108.30 million compared to AED 131.2 million during the corresponding period of 2016, whilst the net profit decreased 24% to AED 59.5 million compared to AED 78.5 million in the last quarter of 2016.
During its meeting on Wednesday, 31 January 2018, the Board of Directors reviewed and approved the annual results, which will be presented for ratification at the Annual General Meeting of the Company that will be held in coordination with The Securities and Commodities Authority (SCA). The Board also proposed a cash dividend of 5% of the Company’s capital equivalent to AED 400 million.
Augmenting market infrastructure and diversifying product offering
Commenting on the key developments and achievements of 2017, His Excellency Essa Kazim, Chairman of the Company said, “The year 2017 witnessed many achievements, especially as DFM started implementing its Strategy 2021, approved by the Board of Directors in December 2016. This strategy aims at leveraging past successes, as well as paving way for even bigger larger achievements and further sustainable growth. DFM’s Strategy 2021 focuses on enhancing the market’s infrastructure and regulatory framework through the diversification of its products and services and launching new platforms to trade different asset classes in order to increase market depth and further enhance trading activity. To achieve this objective, DFM launched several initiatives during 2017 including; the Exchange Traded Funds (ETFs) platform, Liquidity Provision and Market Maker services, and a Regulated Short Selling (RSS) service. Additionally, 2017 saw the introduction of the General Clearing Membership service, and the launch of two new regulations that allow investors to perform repurchase (REPO) and Murabaha transactions. We also signed an agreement with Nasdaq Dubai to introduce future contracts linked to DFM-listed securities.”
“The DFM maintained its attractiveness as the market of choice for companies looking to list their shares whether through IPOs or as a dual listing. During 2017, the DFM has welcomed the listing of Emaar Development Company, the largest of its kind in the market since 2014. Other listings included Orient UNB Takaful, Bahrain-based Khaleeji Commercial Bank and Awtad PJSC (on the Second Market). The exchange is well positioned to attract more potential future IPOs. Additionally, the DFM has accomplished the cash dividend distribution of its listed companies for the sixth year, distributing a total of AED 13.3 billion to 429,000 investors pertaining to the financial year 2016. This brought up the number of listed companies utilizing DFM’s dividend distribution service to 35 companies in 2017 compared to 26 in 2016,” H.E. Essa Kazim added.
Attracting investors and foreign liquidity
H.E. Essa Kazim said: “The trading value dropped 13% in 2017 to AED 115 billion due to some unfavorable global circumstances related to oil prices and international markets’ volatility. However, the DFM maintained its attractiveness to various types of investors due to its world-class infrastructure and the lucrative opportunities it provides as a proxy for the diversified and strong national economy. The market has attracted more than 6 thousand new investors in 2017 and net investments of foreign investors (excluding Arabs and GCC Nationals) reached to AED 1.25 billion, noting that foreign investors’ presence continued to increase over the past years from 11.2% in 2011 to 21.7% in 2017, at 12% compound annual growth rate.”
Investor roadhsows
It is noteworthy that the DFM has organized two international investor roadhsows in London and New York during 2017, as part of its continuous efforts to link listed companies with international investors. The two events has witnessed tremendous success attracting 76 international institutions with $ 3.3 trillion of assets under management, which contributes in attracting foreign liquidity and further boost trading activity.
Building DFM’s state-of-the-art new home
“During 2017, DFM appointed consultants and project managers for the construction of a new headquarter on 10,000 square meters at the Business Bay. We plan to build a smart, sustainable and state-of-the-art home for DFM that reflects the prestigious status of Dubai as a global financial center, and the future expectations of both DFM and all market participants,” Mr. Kazim went as saying.
It is noteworthy that the DFM inaugurated its smart trading floor during the first quarter of 2017, following the largest renovation in its history, to accommodate innovative services and equipment, and offering investors several digital channels that allow them to pursue their trading activities. The move was inspired by the leadership’s vision aimed at transforming Dubai into a smart city.
Strengthening Dubai’s position as the capital of Islamic economy
“Maintaining its constant efforts to strengthen Dubai’s leading position as the capital of Islamic economy and creating the necessary framework for developing Islamic capital markets, the DFM launched the “Standard on Hedging against Investment and Finance Risks” in the first quarter of 2017, noting that DFM is the first Shari’a-compliant exchange globally since 2007. This Standard along with the Standard on Stocks and the Standard on Sukuk create an all-inclusive framework for Islamic finance sector and further fortify the impressive successes that Dubai achieves in line with the wise vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai. The DFM is currently preparing for a new standard on Shari’a-compliant investment funds,” H.E. Essa Kazim concluded.
