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The Dubai Financial Market Company PJSC, today announced resilient results for the financial year ending 31st December 2008, demonstrating good revenues and a net profit despite of the global financial crisis.
DFM Company recorded a net profit of AED 605 million for the year 2008, compared to AED 972 million in 2007, after excluding IPO profits which is extraordinary profit.
Total revenues reached AED 1.01 billion, at the end of 2008, compared to AED 1.13 billion, at the end of 2007. The total revenue comprised AED 689 million operational revenues and AED 324 million investment revenues. The Dubai Financial Market Company PJSC, earning per share was AED 0.08 compared to AED 0.18 at the end of 2007.
During its meeting on Monday March 2nd 2009, the Dubai Financial Market PSJC Board of Directors proposed a cash dividend to shareholders of 8%, equivalent to AED 635 million. The proposal will be discussed during the annual general meeting of the company, to be held on Sunday April 5th 2009. This is the second consecutive year the company proposes to pay a cash dividend, despite the exceptional developments in the global markets.
The company applied a conservative policy through the transfer of AED 250 million of investment revaluation reserves to profit and loss, despite the good performance of companies invested into, which led to quarterly loss of AED 176 million during the last quarter of 2008.
Essa Kazim, Executive Chairman of DFM, said: “The world is facing an unprecedented financial crisis that has affected financial markets. We have seen major implications for trading volumes and values at DFM, despite being one of the most liquid and attractive financial markets for foreign investors in the region. Our revenues have been affected also due to the decrease in trading fees.
“Nevertheless, we are pressing ahead with our strategy to enhance our leading position as the market of choice for investors and companies seeking listing. This will enable us to look ahead with confidence supported by the excellent relations we have with our business partners, and the unstinting support of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.
“HH Sheikh Mohammed’s message is quite clear - the UAE economy has been, and will continue to be, solid. The recent successful bond issue, along with other innovative steps taken by the emirate of Dubai, will have a positive impact on the whole economy and financial markets in particular,” Kazim added.
The DFM is keen to strengthen its position and diversify opportunities for investors by encouraging new listings and continuing its initiatives aimed at playing a pivotal role in the development of financial markets in the UAE and the wider region, Kazim said.
“Along with our leading position as the first bourse in the region to go public, we are also the first stock exchange in the region to be fully Sharia compliant. We are now actively seeking and developing new products and investment tools and list more companies, to give more depth and diversification to the local financial markets.”
Kazim added that he was confident that the DFM’s early adoption of international corporate governance standards would put the exchange in a strong position to weather the global financial crisis.
”We will step up our efforts to apply the best practices and diversify sources of revenue and profit, while continuing to take the necessary steps to cement our leading positions locally and regionally.”
Click here to download DFM's yearly audited financial statements for the year ended 31/12/2008.
