DFM Q1 net profit up on new initiatives
dubai — The Dubai Financial Market Company (DFM) on Monday said its 2017 first quarter net profit rose 19 per cent to Dh102.34 million from Dh86 million in the corresponding period last year.
The company’s total revenue has grown by 18 per cent to Dh149.34 million in the first quarter of 2017 compared to Dh127 million during the same period previous year. The revenues comprise Dh122 million of operating income and Dh27.34 million of investment returns.
Meanwhile, operating expenses reached to Dh47 million during Q1 2017 compared to Dh46.2 million during the same period of 2016.
Essa Kazim, chairman of DFM, said the company’s revenue and profit witnessed a healthy upsurge during the first quarter of 2017 due to the DFM’s attractiveness to various market participants supported by a world-class infrastructure and regulations in line with international best practices.
“This drive has gained momentum with the implementation of numerous initiatives that played a pivotal role in achieving this performance. Foreign investors, excluding Arabs and GCC nationals, have maintained their active participation with net investments of Dh612 million, which indicates their interest in the lucrative opportunities available on DFM,” the chairman said.
The DFM’s trading value increased 19 per cent during the first quarter of 2017 to Dh48.2 billion compared to Dh40.58 billion during the corresponding period of last year. Trading commission
Foreign investors have maintained their active participation with net investments of dh612 million Essa Kazim, chairman of DFM
is the main revenue stream for the company.
“The pace of our development efforts has accelerated on various levels, including the launch of exchange-traded funds platform, the first of its kind in regional capital markets. The platform is governed by an excellent regulatory framework that offers unprecedented levels of integration and ongoing support to the burgeoning ETF industry, particularly market makers, authorised participants and liquidity providers,” Kazim said.
“To ensure market readiness for future growth, the DFM also plans to overhaul its technological infrastructure as Borse Dubai, the parent company of DFM, signed an agreement with Nasdaq to bolster the technological infrastructure and improve trading and post-trade practices. This step will strengthen the leading position of DFM at the forefront of regional exchanges as well as pave the way for various enhancements, including the establishment of a central counterparty clearing,” he said.