Dubai Financial Market 'PJSC' announces its results for the financial year ending 31st December 2012

DFM has topped the best performing regional exchanges in 2012, with its general index up 20% and a 52% increase in trading value to Dhs48.7bn, 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.

During its meeting on Monday, February 18th 2013, the Board of Directors reviewed and approved the annual results, which will be ratified during the annual general meeting of the company that will be announced later on in coordination with The UAE Securities and Commodities Authority (SCA).

Abdul Jalil Yousuf Darwish, Chairman, Dubai Financial Market (PJSC), 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% compared to 2011. The revenue from market data sales to news agencies, television networks and local, regional and international data providers increased by 12% during 2012."

"DFM has also managed cash dividend distribution for 2011 on behalf of eight listed companies, with a total value of Dhs1.35bn, marking an increase of 21% 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," he added.

"Accordingly, DFM Company is heading into a new phase of development and growth thanks to the thriving economic climate in the Emirate of Dubai and the United Arab Emirates. The performance of the economy has recorded a remarkable and rapid improvement, with the majority of its sectors growing at high growth rates. Moreover, the year 2012 witnessed the beginning of recovery by the real estate sector, as well as the constant improvement in the performance of the banking sector. These two sectors represent the key pillars for DFM. We believe that this positive environment will provide the sufficient ground to harvest the fruits of the growth strategy which the Board has developed, approved and strived to implement since we have had the honor to take the responsibility of shareholders' interest, and ultimately serve the economy of the Emirate of Dubai and the United Arab Emirates," he concluded.

Essa Abdul Fattah Kazim, Managing Director and CEO, Dubai Financial Market (PJSC), 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."

"In October 2012, the DFM launched the new Electronic Disclosure System "Efsah", which is a sophisticated application that provides listed companies with the highest level of efficiency and speed in publishing their disclosures; and hence, enhancing the level of transparency and overall, promoting the trading environment which has always been based on fairness and equal opportunities for all participants. The DFM's management started in the fourth quarter of 2012 to prepare for the introduction of the new regulations approved by the Securities and Commodities Authority, including the Market Making, Securities Lending and Borrowing, Short Selling, and Liquidity Provider. Our preparations in this regard include the modification of the existing rules and having them approved by the regulatory authority, as well as effective communication with market participants to explain the new business model to ensure smooth implementation," Kazim added.