DUBAI: DFM Posts Net Profit of AED 102.34 Million during Q1 of 2017

The Dubai Financial Market Company, DFM, announced its financial results for the first quarter of the year ending 31 March 2017, reporting a net profit of AED102.34 million, a 19 percent increase compared to AED86 million during the corresponding period of 2016.

The company’s total revenue has grown by 18 percent to AED149.34 million in Q1 of 2017 compared to AED127 million during Q1 in the previous year.

The revenues are comprised of AED122 million of operating income and AED27.34 million of investment returns.

Meanwhile, operating expenses reached to AED47 million during Q1 2017 compared to AED46.2 million during the same period of 2016.

DFM’s trading value has increased 19 percent during the first quarter of 2017 to AED48.2 billion compared to AED40.58 billion during the corresponding period of last year.

Trading commission is the main revenue stream for the company. Essa Kazim, Chairman of DFM, said, "The company’s revenue and profit witnessed a healthy upsurge during the first quarter of 2017 due to DFM’s sustainable attractiveness to various market participants supported by a world-class infrastructure and regulations in line with international best practices.

This drive has gained momentum with the implementation of numerous initiatives that played a pivotal role in achieving this performance."

"Foreign investors, excluding Arabs and GCC nationals, have maintained their active participation with net investments of AED612 million, similar to its level in the corresponding period of 2017, which clearly indicates their constant interest in the lucrative opportunities available on DFM," the Chairman added.

"The pace of our development efforts has accelerated on various levels including the launch of Exchange-Traded Funds, ETFs, Platform, the first of its kind in regional capital markets.

The Platform is governed by an excellent regulatory framework that offers unprecedented levels of integration and ongoing support to the burgeoning ETF industry, particularly market makers, authorised participants and liquidity providers," he added.

"To ensure market readiness for future growth, the DFM also plans to overhaul its technological infrastructure as Borse Dubai, the parent company of DFM, signed a landmark agreement with NASDAQ to bolster the technological infrastructure and further improve trading and post-trade practices.

This significant step will further strengthen the leading position of DFM at the forefront of regional exchanges as well as pave the way for various enhancements, including the establishment of a central counterparty, CCP, clearing."

"Considering its status as the first Sharia compliant exchange globally since 2007, the DFM launched its 'Standard on Hedging against Investment and Finance Risks' during the first quarter of 2017, as part of the DFM’s constant efforts to further enhance the guiding framework of Islamic finance and capital markets.

This step underlines the exchange commitment to play an integral role in strengthening Dubai’s position as the Capital of Islamic Economy globally in line with the wise vision of His Highness Sheikh Mohammed bin Rashid Al MaktoumVice President, Prime Minister and Ruler of Dubai.

This standard is the newest addition to DFM’s Sharia compliant standards, which also include the Standard on Stocks and the Standard on Sukuk," Kazim concluded.