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DFM Company Net Profit up 246% to AED621 million in the first 9 months of 2014

Dubai Financial Market Company (PJSC) announced its financial results for the first 9 months of the year ended September 30th 2014, recording a net profit of AED 621 million, a 246% increase from AED 179.3 million in the same period of 2013. Net profit in the third quarter of 2014 reached 153.5 million, compared to 82.8 million in the third quarter of 2013.

The Company registered total revenue of AED 746.3 million during the first 9 months of 2014 compared to AED 300.6 million during the corresponding period of 2013, a 148% increase. The revenue comprised AED 705.7 million of operating income and AED 40.6 million of investment returns. Company expenses reached AED 125.2 million by the end of September 2014 compared to AED 121.3 million in the same period of 2013. During the third quarter of 2014, revenue reached AED 194.2 million compared to AED 122.2 million in the third quarter of 2013, whilst expenses amounted to AED 40.7 million in the same period compared to AED 39.4 million.

It is noteworthy that the traded value of all shares listed on DFM significantly increased by 192.5% to AED 315.5 billion during the first 9 months of this year compared to AED 107.8 billion in the same period last year. The traded value increased 60% to AED 78.4 billion in the third quarter of 2014 compared to AED 49 billion during the same period of 2013.

Commenting on this His Excellency Essa Kazim, Chairman of Dubai Financial Market (PJSC), said: “The DFM has continued its outstanding performance propelled by significant interest from local and international investors alike. In spite of a relatively restrained second quarter, the DFM General Index advanced 27.9% during the third quarter, rapidly restoring its strong performance to end the third quarter 49.6% higher than at the start of the year. The daily average traded value increased 194% to AED 1.7 billion during the first 9 months of 2014 compared to AED 567.7 million during the same period of 2013. This has been achieved due to the market’s strong appeal, based on its comprehensive infrastructure according to international best practices, the superb performance of listed companies, and the sound fundamentals of our national economy which has maintained an annual growth rate of 4.2% on average since 2010 and is expected to register higher rates between 4.5% and 5% over the coming years.”

“During the third quarter of this year, DFM witnessed the resurgence of IPOs with the listing of Marka, the exchange’s first IPO since 2009. The month of September also witnessed the IPO of Emaar Malls Group which began trading on DFM on October 2nd. . We are optimistic that market activity will gain further momentum with the presence of new companies from economic sectors currently unrepresented in the market, which underlines the success of DFM’s strategy on listings as we endeavor to achieve the best possible illustration of key economic sectors on our market. Over the last few years, we have spared no effort to achieve this goal through direct and continuous dialogue and awareness efforts in cooperation with private and family businesses to support their qualification for IPOs. We believe that the constructive outcome of these efforts will further materialize in the near future considering the large number of companies that are in a position to IPO and list on DFM.” H.E. Essa Kazim added.

“Moreover, DFM’s attractiveness to local and international investors has further increased with the inclusion of the UAE market in the Emerging Markets category by S&P Dow Jones on September 22nd, which reaffirms international institutions’ recognition of UAE’s achievement in regard to the development of market infrastructure based on international best practices and its interesting and diversified investment opportunities. Undoubtedly, having the UAE market classified as an Emerging Market by leading financial institutions such as S&P Dow Jones and Morgan Stanley Capital International – MSCI, clearly indicates international investors’ consensus on these lucrative opportunities considering that net in-flow of foreign investments has reached approximately AED 4 billion during the first 9 months of 2014”, H.E. Essa Kazim concluded.