The Dubai Financial Market Company (PJSC) announced today its financial results for the first three quarters of 2010 ending September 30th, recording a net profit of AED 77.8 million compared to AED 258 million in the corresponding period 2009. The total revenue reached AED 205 million for the first three quarters of 2010, comprised of operational, investment and other income.
The company recorded a net loss of AED 2.95 million throughout the third quarter of 2010 due to the inclusion of NASDAQ Dubai’s financial results. When excluding the above mentioned results, DFM’s net profit in the same quarter is AED 3.8 million.
Abduljalil Yousuf Darwish, Chairman of DFM (PJSC) said: “Over the last few months, DFM has seen numerous constructive developments which have laid a strong foundation to implement the future growth strategy. In May 2010, the company accomplished the payment of two thirds of NASDAQ Dubai, followed in July by the outsourcing of the latter’s operations to DFM. Certainly, this plays a pivotal role in achieving Dubai Government’s vision to create a dynamic capital markets hub. A close glance at the two exchange’s performance since the outsourcing date will easily show a considerable improvement in market activity thus reaffirming that DFM (PJSC) is on the right path”.
Essa Kazim, Managing Director and CEO of Dubai Financial Market (PJSC) said: “Despite the 54% fall in DFM’s trading value during the first three quarters of 2010 compared to the corresponding period in 2009 which overshadowed the company’s revenue and profit, we continue to believe that this as a passing circumstance that does not symbolize our market. We have seen a gradual improvement in investors’ sentiment and a renewed attention from foreign investors triggered by some encouraging developments such as the recent inclusion of UAE markets in the FTSE Global Index. Additionally, the clearest indication of the positive impact of these developments is the 15.2% jump of the DFM General Index during the third quarter, places DFM amongst the best performing leading financial markets globally”.
“Recently, DFM initiated a series of initiatives as part of its drive to get by international best practices such as the forthcoming implementation of Delivery versus Payment (DvP) and many other mechanisms that will facilitate promoting UAE markets into higher rankings internationally and ultimately reflect positively on the market. Moreover, DFM (PJSC) started the implementation of an ambitious strategy to diversify revenue and profit streams and limit dependency on trading commissions as the main source of profitability. The financial services sector is one of the main sectors that is expected to contribute achieving this, as we are committed to launch many value-added services for our members and investors. A prime example of this, is the iVESTOR Card, an innovative product launched earlier this year as the first of many products to be developed by the financial services division of DFM. The company is also looking to boost information sales revenue comparable to leading international markets”, Kazim added.
“Furthermore, the consolidation between DFM and NASDAQ Dubai, which is nearly accomplished, will further amplify operational and spending efficiency and ignite a surge of activity across the two exchanges. We are fully confident in our strategy and look forward to see it come through to fruition rapidly”, Kazim concluded.