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18 July 2024

DFM Company proposes cash dividend of 8%

Essa Kazim (SUPPLIED)

By Mohamad Al Kady

The board of directors of the Dubai Financial Market (DFM) Company has proposed a cash dividend of eight per cent, a pay out of Dh635 million, for 2008.

This is the second consecutive year that the company has proposed to pay a cash dividend. The proposal will be discussed during the annual general meeting to be held on April 5.

The company has reported a net profit of Dh605m for the year 2008, down by 38 per cent compared to Dh972m in 2007, after excluding IPO profits, which is extraordinary profit.

According to a statement from DFM, the total revenues reached Dh1.01 billion at the end of 2008, compared to Dh1.13bn at the end of 2007.

"The total revenue comprised Dh689m operational revenues and Dh324m investment revenues. The Dubai Financial Market Company earning per share was Dh0.08 compared to Dh0.18 at the end of 2007," the statement said.

It added that the company had applied a conservative policy through the transfer of Dh250m of investment revaluation reserves to profit and loss account, which led to quarterly loss of Dh 176m during the last quarter of 2008.

Essa Kazim, Executive Chairman of the 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. 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. 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.