Dubai Financial Market Performance 2013

The Dubai Financial Market General Index increased by 107.7% to 3369.8 points at the end of this year compared to 1622.5 points at the end of 2012. At the sectoral level, indexes of seven out of the nine sectors represented on DFM ended the year in the green, with the Financial & Investment Services sector increasing the most by 169.2%, followed by the Banking and Real Estate & Construction sectors by 120.6%, and 108.2% respectively. The Consumer Staples sector index down by 9.9%, and the Insurance sector index down by 7.2%.

The market capitalization increased at the end of this year by 42.7% amounting to AED 259.6 billion compared to AED 181.9 billion at the end of previous year. The value of shares traded during this year reached AED 159.9 billion, compared to AED 48.6 billion recorded during 2012, an increase by 229.1%. The number of shares traded up by 214.3% to reach 127.2 billion shares during this year compared to 40.5 billion shares were traded during the last year. The number of transactions executed during 2013 up by 115.3% to reach 1.3 million compared to 621.4 thousand deals carried out during the previous year.

As for the sectors’ contribution to trading volumes, the Real Estate and Construction sector ranked first in terms of the traded value, to reach AED 70.9 billion, or 44.3% of the total traded value in the market. The Banking sector ranked second at AED 31.6 billion or 19.8%, followed by the Financial & Investment Services sector with AED 27.3 billion or 17.1%, the Transportation sector with AED 12.4 billion or 7.7%, the Services sector with AED 8.6 billion or 5.4%, the Insurance sector with AED 4.8 billion or 3%,the Telecommunication sector with AED 4.2 billion or 2.6%, whilst other sectors shared the rest of trading volumes, as shown in below chart.

The value of stocks bought by foreign investors during this year reached AED 69 billion comprising 43.1% of the total traded value. The value of stocks sold by foreign investors during the same period reached AED 67.3 billion comprising 42.1% of the total value traded. Accordingly, DFM net foreign investment in-flow reached AED 1.7 billion.

On the other hand, The value of stocks bought by institutional investors during this year reached AED 38.3 billion comprising 24% of the total traded value. The value of stocks sold by institutional investors during the same period reached AED 37.5 billion which constitutes 23.5% of the total value traded. Net institutional investment in-flow into DFM amounted to AED 790.2  million.