Dubai Financial Market Company announced its consolidated financial results for the first quarter of the year ending March 31, 2022, posting a 17 per cent increase in its net profit to Dhs27.5 million, compared to Dhs23.4 million during the corresponding period of 2021.

The Company’s total consolidated revenue has increased by 7 per cent to Dhs78.6 million in Q1, of 2022 compared to Dhs73.4 million during Q1 of 2021.

The revenues are comprised of Dhs55.9 million of operating income and Dhs22.7 million of investments returns & others. Meanwhile, operating expenses reached to Dhs51.1 million compared to Dhs50 million.

Commenting on the key developments of Q1 of 2022, Helal Al Marri, Chairman of the Dubai Financial Market Company, said, “The DFM trading activities gained further momentum during the first quarter of 2022, extending the positive performance of the previous period following the announcement of an ambitious strategy to develop financial markets in Dubai and to reinforce the Emirate’s position as a global financial hub in line with the leadership’s vision.”

He added, “Accordingly, the DFM’s trading value has increased 48 per cent to Dhs 22.8 billion during the first quarter of 2022 compared to Dhs 15.4 billion during the corresponding quarter of 2021.  The DFM General Index advanced 10.3 per cent and the market capitalisation increased 6.4 per cent to Dhs437.4 billion from its level at the end of 2021. Foreign investors maintained their strong presence through a market share of 45.8 per cent of trading value during the first quarter and net purchases of Dhs 2.1 billion, while their ownership reached to 23.2 per cent of the market capitalisation at the end of March 2022. Institutional investors’ share of trading value reached to 51.6 per cent with net purchases of Dhs 651 million.

“The DFM has attracted 51,404 new investors during the first quarter of this year, 73.4 per cent of them are foreign investors, bringing the total number of its investor base to 903,077 investors representing 209 nationalities. These encouraging figures resonates market participants’ confidence and strong appetite towards DFM’s lucrative trading and IPO opportunities.”

“During the first quarter of 2022, the DFM accelerated its strategic development plans aiming at strengthening its position as a main gateway to investment and one of the leading regional markets in terms of diversifying product including; equities, equity futures, bonds and Sukuk, ETFs, REITs, etc.

The DFM is striding to expand the range of opportunities and attract leading companies from various economic sectors to IPO and list in addition to introducing new financial products. Furthermore, our digital on-boarding drive witnessed remarkable achievements with the expansion of Investor Numbers (NIN) issuance and IPO subscription through online channels of both DFM and its business partners including; brokerage firms, financial and banking institutions, etc,” he said, in conclusion.

Last week Dubai Financial Market (DFM) announced that HSBC has become the first international General Clearing Member (GCM) to join the market, enabling the bank to provide clearing and settlement services to its customers worldwide and to other DFM trading members.

The introduction of GCM service on DFM by HSBC is part of a wider collaboration programme between the two entities aimed at enhancing market infrastructure and connectivity with international and institutional investors.

HSBC is expected to offer its GCM service on DFM Equity Market starting in May. It is also looking at the opportunity to offer equities futures clearing.

Hamed Ali, CEO of DFM and Nasdaq Dubai, said, “We are delighted to welcome HSBC as the first international GCM on DFM. The introduction of HSBC’s GCM service on DFM is a key step toward a series of enhancements to market accessibility planned as part of our growth strategy. HSBC’s regional and international footprint and capital markets expertise will, I believe, help accelerate our growth plans. We are witnessing growing demand for direct connectivity on DFM from regional and international investors and launching this new service responds directly to that growth in market activity.”

Abdulfattah Sharaf, CEO, HSBC UAE and Head of International, HSBC, said, “Being the first international general clearing member on the Dubai Financial Market aligns well with HSBC’s ambition to be the preferred international financial partner of our clients around the world. HSBC has been investing to support the development of Dubai’s economy since we became the first bank to open our doors for business here 75 years ago and this latest partnership with DFM reaffirms the importance of our longstanding strategic presence in this market. The appetite of international investors for securities issued by governments and corporates in the region is large and growing and our new role as a general clearing member on the DFM will enable clients across HSBC’s global network to invest in the potential here.”

WAM