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Essa Kazim ... revenue hit by fall in trading

DFM posts net profit down 66pc to $71m in 2015

DUBAI, February 4, 2016

Dubai Financial Market has reported a net profit of Dh261 million ($71 million) for the year 2015, compared to Dh759.3 million in 2014, a 66 per cent decline.  

Total revenues reached to Dh451 million in 2015 compared to Dh936.7 million in 2014. The total revenue comprised Dh393.7 million of operational revenues and Dh57.3 million of investment revenues and others.

The board of directors reviewed and approved the annual results at a meeting today. The board also proposed a cash dividend of 5 per cent of the capital equivalent to Dh400 million.

Foreign investment activity gains momentum
Essa Kazim, chairman of the company, said: “The DFM Company’s revenue and profit have been affected by the 60 per cent decline in the trading value during 2015 to Dh151.4 billion compared to Dh381.5 billion in 2014 as the trading commission represents the main revenue stream for the company. This decline was prompted by some immediate circumstances unrelated to the sound fundamentals of the national economy, especially the decrease in oil prices as well as concerns about the slowdown in China and its impact on global economy, which affected various international markets.

"Regardless of this, DFM has maintained its attractiveness to foreign investments with the UAE’s classification as Emerging Market by leading institutions such as MSCI and S&P Dow Jones. In a clear indication on their growing confidence in the market, foreign investors’ activity strengthened in 2015 and their share of trading increased to 48.6 per cent compared to 43.8 per cent in 2014. Foreign investors except for Arabs and GCC nationals were net buyers of Dh900 million whilst institutional investors were net buyers of Dh1.5 billion," he said.

Smart Borse strategy
“During 2015, we have focused on implementing the “Smart Borse” strategy through series of services and innovative solutions in line with the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai. DFM has launched an integrated electronic platform of investor services, enabling them to access 15 services through smart phone applications and the website," he said.

New listings
DFM has maintained its attractiveness as a listing venue in the year 2015 with the listing of Damac Properties followed by the first listing of a private joint stock company, AlSafwa Islamic Financial Services in the ”Second Market” in November, he said. - TradeArabia News Service
 




Tags: Dubai Financial Market | DFM |

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