Dubai Financial Market’s (DFM) net profit before tax rose to Dh195.4 million in the first half of 2024, marking a 74% increase compared to the same period in 2023.
Total consolidated revenue reached Dh305.7 million, a 40% rise from Dh218.1 million in H1 2023. This revenue comprised Dh154 million from operating income and Dh151.7 million from investment returns and other income. Despite the increase in revenues, total expenses, excluding tax, rose marginally to Dh110.3 million from Dh106 million in the same period last year.
DFM experienced a notable surge in trading activity and investor interest in the first half of 2024. The total number of trades rose to 1.07 million, reflecting a 22% increase year-over-year. Trading value also saw a 4% rise, reaching Dh48 billion, although the DFM General Index declined slightly by 0.73%.
The exchange attracted 72,583 new investors during the first six months of 2024, with foreign investors making up 85% of this new cohort. Foreign investors also contributed 50% of the trading activity, with institutional investors accounting for 66% of the trading value. Net purchases by foreign investors totalled Dh1.2 billion.
Successful IPO listings
The first half of 2024 saw successful IPO listings, further strengthening DFM’s market position. In March, Dubai’s parking operator, Parkin, went public, experiencing an oversubscription level of approximately 165 times for all tranches combined, a record for the exchange. In May, Spinneys, a premium grocery retail operator, also went public with its offering and oversubscribed 64 times. Both IPOs highlighted strong investor interest and confidence in Dubai’s market.
Sector performance
The market capitalisation of DFM-listed companies stood at Dh679 billion in H1 2024. The sector distribution by market capitalisation included financials at 42%, utilities at 20%, real estate at 18%, industrials at 13%, and communication services at 4%, with other sectors making up the remainder. This diverse GDP mix highlights the potential to attract more companies from underrepresented sectors, enhancing DFM’s market offerings.