H.E. Essa Kazim underlining key developments of the period:
- Trading value increased 19% to AED 48 Billion and net in-flows of foreign investors reached AED 612 Million
- The launch of Exchange-Traded Funds (ETFs) Platform as well as the technology overhaul plan in cooperation with NASDAQ
- Plans to introduce Central Counterparty (CCP) clearing as part of all-inclusive development of post-trade services
- The launch of Hedging Standard reinforces Dubai’s position as the Capital of Islamic Economy globally
- The inauguration of “Smart Trading Floor” with numerous innovative services
Dubai Financial Market Company (PJSC) today announced its financial results for the first quarter of the year ending 31 March 2017, reporting a net profit of AED 102.34 Million, a 19% increase compared to AED 86 Million during the corresponding period of 2016.
The company’s total revenue has increased by 18% to AED 149.34 Million in Q1-2017 compared to AED 127 Million during Q1-2016. The revenues are comprised of AED 122 Million of operating income and AED 27.34 Million of investment returns. Meanwhile, operating expenses reached to AED 47 Million during Q1-2017 compared to AED 46.2 Million during the same period of 2016.
DFM’s trading value has increased 19% during the first quarter of 2017 to AED 48.2 Billion compared to AED 40.58 Billion during the corresponding period of last year. Trading commission is the main revenue stream for the Company.
His Excellency Essa Kazim, Chairman of Dubai Financial Market (PJSC) said: “The Company’s revenue and profit witnessed a good 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 AED 612 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 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, authorized participants and liquidity providers,” His Excellency Essa Kazim added.
“In order to ensure market readiness for forthcoming growth, the DFM also plans to overhaul its technological infrastructure as Borse Dubai, the parent company of DFM, singed 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 paves the way for various enhancement, including the establishment of a central counterparty (CCP) clearing.”
“Considering its status as the first Shari’a-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 Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai. This standard is the newest addition to DFM’s Shari’a-compliant standards, which include Standard on Stocks and Standard on Sukuk,” H.E. Essa Kazim added.
“During the first quarter of 2017, the DFM also accomplished the biggest ever revamp of its trading floor with the inauguration of the state of the art “Smart Trading Floor”, in line with its Smart Borse strategy. The contemporary-looking floor provides various market participants with multiple tools and channels to access market information and services including; new boards, tickers, PCs and tablets in line with the leadership’s vision on transforming Dubai into a smart city,” H.E. Essa Kazim concluded.