Dubai Financial Market (DFM), one of the leading stock exchanges in the Middle East, has announced a 30% surge in its net profit for the first quarter of 2023. According to the company’s financial statement, the net profit for Q1 2023 reached AED35.6 million, compared to AED27.3 million in the same period last year.
The impressive growth in net profit is attributed to several factors, including the increase in trading activity and the successful implementation of the company’s strategic initiatives. The Dubai Financial Market has been working on improving its market infrastructure, expanding its product offerings, and enhancing its customer services to attract more investors and boost trading volumes.
Trading activity on the Dubai Financial Market has been on the rise in recent years, driven by the growing investor confidence in the UAE’s economy and the country’s strategic position as a regional hub for business and finance. The DFM has also been actively promoting its market to foreign investors, leveraging its position as a gateway to the Middle East and North Africa (MENA) region.
Commenting on the Q1 2023 financial results, Hassan Al Serkal, the CEO of Dubai Financial Market, said, “We are pleased to report another quarter of strong financial performance, reflecting our ongoing efforts to enhance our market infrastructure, expand our product offerings, and improve our customer services. We remain committed to our strategic priorities and will continue to invest in our business to drive long-term sustainable growth.”
Al Serkal also highlighted the company’s efforts to support the UAE’s sustainable development goals, including its focus on environmental, social, and governance (ESG) issues. He said that the DFM is committed to promoting responsible investment practices and supporting companies that demonstrate good ESG performance.
The Dubai Financial Market financial results for Q1 2023 also showed an increase in total revenue, which reached AED71.8 million, up from AED62.5 million in Q1 2022. The revenue growth was driven by a rise in trading commissions, listing fees, and other income streams.
The company’s expenses for the quarter were AED36.2 million, compared to AED35.2 million in the same period last year, reflecting a slight increase in operating costs. However, the DFM’s operating profit for the quarter was AED35.6 million, up from AED27.3 million in Q1 2022.
The DFM’s total assets as of March 31, 2023, stood at AED2.8 billion, while its total equity was AED1.6 billion. The company’s cash and cash equivalents were AED803 million, reflecting a strong liquidity position.
The Dubai Financial Market strong financial performance in Q1 2023 is expected to boost investor confidence in the company and the UAE’s stock market. The DFM has been one of the best-performing stock exchanges in the region in recent years, with a market capitalization of around AED300 billion and more than 90 listed companies. With the market having experienced healthy growth and stability, it is no surprise that investors are anxious to invest in the DFM. The strong performance of its listed firms has also been a major contributing factor to the success of the exchange as well.
The company has also been actively working on improving the regulatory environment for listed companies and investors, with a focus on enhancing corporate governance and transparency standards. The DFM has implemented several measures to encourage companies to comply with best practices and enhance their disclosure and reporting requirements.
The DFM’s efforts to enhance its market infrastructure and promote sustainable investment practices are in line with the UAE’s broader goals to become a leading hub for sustainable finance and investment in the region. The country has launched several initiatives in recent years to support the growth of the green and sustainable finance market, including the issuance of green bonds and the launch of a sustainable finance task force.
