Dubai Financial Market returned back into black in 2012, posting Dh35.2 million profit as compared to Dh6.9 million loss in the previous year.
Total revenues reached Dh191 million at the end of 2012 compared to Dh176.5 million in 2011. The total revenue comprised of Dh146.5 million operational revenues and Dh44.5 million of investment revenues and others.
DFM has topped the best performing regional exchanges in 2012, with its general index up 20 per cent and a 52 per cent increase in trading value to Dh48.7 billion, which reflects investors’ growing realization of the underlying value provided by DFM-listed securities, as well as their positive recognition of the exchange's achievements in the previous period.
Abdul Jalil Yousuf Darwish, Chairman, Dubai Financial Market, said: “During 2012, our efforts have been focused on continuing the implementation of the strategy aimed at improving the Company's performance and efficiency and enhancing the shareholder’s value. In order to achieve this strategic vision, the Company's efforts were centered around five main objectives including; the development of market participants’ services to drive market activity, the monetization of financial products, IPOs focused activities, infrastructural advancements based on international best practices and cost efficiency. As part of the strategy to diversify sources of income, the exchange signed 27 contracts for market data dissemination during 2012, an increase of 35 per cent compared to 2011. The revenue from market data sales to news agencies, television networks and local, regional and international data providers increased by 12 per cent during 2012. DFM has also managed cash dividend distribution for 2011 on behalf of eight listed companies, with a total value of Dh1.35 billion, marking an increase of 21 per cent compared to dividends distributed for the previous year. Additionally, The DFM expanded its services to provide margin trading through brokerage firms operating in the market. Three new companies were licensed during 2012, compared to one company in 2011, bringing the number of companies licensed by DFM to provide this service to four companies”.
Essa Abdul Fattah Kazim, Managing Director and CEO, Dubai Financial Market, said: “During 2012, we have endeavored to translate the strategic objectives into key deliverables through the implementation of various initiatives. We have also engaged in intensive and productive discussions with all stakeholders, including public and private entities, regulators, financial advisory firms and investment banks, with a view to enhance the efficiency of the capital market and promote its role in the national economy. The DFM focused its efforts to attract new companies from the unrepresented economic sectors in order to diversify investment opportunities, in addition to the expansion of asset classes by providing new financial instruments. In order to prepare small and medium-sized enterprises (SMEs) for future listing, the DFM teamed up with NASDAQ Dubai and the Mohammed bin Rashid Establishment for SME Development to explain the benefits of utilizing capital markets to this vital segment of companies”.
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