DFM Company posts net profit of AED 125.5 million in 2018

DUBAI: Dubai Financial Market Company announced its results for the financial year ending December 31, 2018, posting a net profit of AED 125.5 million, compared to AED 232.9 million in 2017, a 46 percent decline, a statement said.

Total revenues reached to AED 324.7 million in 2018 compared to AED 421.6 million in 2017. The total revenue comprised of AED 194.7 million of operational revenues and AED 130 million of investment revenues and others.

Company expenses reached AED 199.2 million during 2018 compared to AED 188.7 million in 2017.

Total revenue of the company during the fourth quarter of 2018 decreased 33 percent to AED 72.8 million compared to AED 108.30 million during the corresponding period of 2017. The net profit of the period decreased 63 percent to AED 21.8 million compared to AED 59.5 million in the last quarter of 2017.

Commenting on the key developments and achievements of 2018, His Excellency Essa Kazim, Chairman of the Company said, “The year 2018 has witnessed a remarkable acceleration in our efforts to implement of DFM’s strategy 2021, which focuses on enhancing competitiveness, diversification of product offering, investment opportunities, continuous development and innovation of market services. We believe that achievements to date and future developments planned within our strategic framework will play a pivotal role in the coining years to further enhance market competitiveness and prepare it in the best possible way to stimulate and sustain growth.”

“The DFM has implemented numerous development plans during 2018; our plan to reorganize post-trade services in line with international best practices has made great strides. The plan aims at enhancing corporate excellence, improving performance, anticipating challenges and ensuring full readiness to realize our growth and development plans. The main objective is to separate trading activities from post-trading services, preparing the Company to meet the requirements for development and growth. The new initiative, which includes the launch of the two new companies for clearing and CSD in 2019, which will reinforce DFM’s leading position amongst the regional capital markets,” H.E. Essa Kazim added.

The DFM continues to diversify its products and services, as DFM’s strategy is to provide investors with new tools that will increase liquidity and propel market activity. The company has completed preparations for the launch of the REITs platform; an important addition to the market’s financial instruments. During 2018, the DFM has issued standards for the listing and trading of Investment Funds as well as for REITs.

DFM is keen to provide a framework that reinforces the development of the REITs sector, which has promising growth prospects considering the impressive presence and growing global reputation of Dubai’s Real Estate sector.

Commenting on DFM’s efforts to promote sustainable trading activities, in collaboration with business partners such as brokerage firms and others, Essa Kazim said, “The year 2018 witnessed the launch of the Allocation Account, in a first-of-its-kind step amongst regional capital markets that caters to the requirements of the global investment funds.

As part of enhancing post-trading services, DFM pioneered its REPO service, allowing investors to take access liquidity by utilizing their securities without the final sale of these securities; another first in the regional markets. Additionally, the past year has witnessed an expansion in the Margin trading, Liquidity Provision and Market Making, Regulated Short Selling (RSS) and Direct Market Access (DMA) services.

Number of brokerage firms providing Margin Trading services increased to 30, whereas the number of brokerage firms that have received DMA licensing stood at 14 and the number of market makers and liquidity providers stood at four.

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