HE Essa Kazim asserting DFM’s key developments of the first half:
- The launch of Allocation Account, Dividend Distribution System and Brokers Rating underlines DFM’s commitment to provide market participants with innovative services
- The DFM has successfully organized its International Investor Roadshow in New York with the participation of 16 institutions managing US$ 3 Trillions of assets
- The DFM received “ISO 22301: 2012” Certificate for Business Continuity and the SCA’s Innovation Award for dividend distribution service through iVESTOR Card
Dubai Financial Market (PJSC) today announced its financial results for the first half of the year ending 30 June 2018, recording a net profit of AED 82.8 Million, compared to AED 145.6 Million during the corresponding period of 2017, a 43% decrease. The net profit of the second quarter of 2018 reached AED 33.9 Million, a 22% decrease compared to Q2- 2017 level of AED 43.3 Million.
The Company recorded a total revenue of AED 182.4 Million in H1-2018 compared to AED 239.3 Million during H1- 2017. The revenue comprised of AED 113.8 Million of operating income and AED 68.6 Million of investment returns. The Company expenses reached AED 99.6 Million compared to AED 93.7 Million recorded during H1-2017. During the second quarter of 2018, the Company’s revenue reached AED 83.3 Million compared to AED 90 Million in the second quarter of 2017, whilst expenses amounted at AED 49.4 Million in the same period compared to AED 46.7 Million during Q2- 2017.
It is noteworthy that during the first six months of 2018, the DFM trading value decreased to AED 36.5 Billion, a 47.6% decrease compared to the corresponding period of 2017. Trading commissions represent the main revenue stream of the DFM Company.
His Excellency Essa Kazim, Chairman of the Dubai Financial Market Company (PJSC) said: “During the first half of 2018, the DFM has implemented numerous development initiatives aimed at further enhancing its infrastructure and regulations in line with international best practices and as part of its strategy 2021 that focuses on diversifying DFM’s products and services. Within this context, the DFM has launched the Allocation Account mechanism in a first step of its kind amongst regional markets. We also accredited the first brokerage firm to provide this service to its clients. The new service creates a unique and transparent solution that caters for the requirements of international fund managers, enabling brokers to implement the orders of clients through this account and allocates the quantities to each investors account based on the average price of the transactions. Additionally, the DFM has maintained and strengthen its position as the most favored listing venue for leading local and regional companies with the listing of Bahrain’s Ithmaar Holding and Egypt’s NAEEM Holding for Investment.”
Strengthening links with international institutions
Commenting on DFM’s efforts to strengthen links with international institutions, HE/ Essa Kazim said: “The DFM has successfully organized its International Investor Roadshow in New York early May with senior representatives of international 16 funds managing approximately US$ 3 Trillions of assets. The event provided listed companies with an efficient platform to highlight their growth strategies and business developments amidst international investors’ growing interest and willingness to further strengthen presence on Dubai’s securities market,” he added.
Innovative services for market participants
Elaborating on DFM’s efforts in terms of market services, His Excellency Essa Kazim said: “Providing market participants with innovative and smart solutions is one of the main pillars of our strategy in line with the leadership’s vision on digital transformation. Accordingly, the first half of the year witnessed the launch of the Dividend Distribution System (DDS), in a first step of its kind. This innovative solution fortifies DFM’s position at the forefront of the most innovative exchanges. Additionally, the DFM launched a first of its kind Brokers Excellence Rating initiative as part of our constant efforts to promote service excellence. The Rating aims at to assessing excellence of services provided by DFM-licensed brokerage firms to their clients and their achievements in terms of embracing the UAE’s digital transformation and innovation strategy.”
The ISO Certificate for Business Continuity
It is noteworthy that the DFM has been certified with the “ISO 22301: 2012” for Business Continuity management System (BCMS) from Lloyd's Register Quality Assurance (LRQA), in a first step of its kind amongst regional exchanges. The Certificate is a key standard for business continuity that recognizes the effectiveness of the system’s design and application in response to disaster recovery when facing any disruptive events. The certificate clearly indicates DFM’s resilience and ability to handle any potential risks related to business continuity.
The SCA’s Innovation Award
In April 2018, the DFM won the Innovation Award organized by the Securities and Commodities Authority (SCA), in recognition of DFM’s dividend distribution service of its listed companies through iVESTOR Card, the leading solution that enables investors to seamlessly receive their dividends. The DFM has introduced this service as part of its strategy to provide various market participants with smart and efficient solutions.
