Surging Profits and Revenue Growth
Dubai Financial Market (DFM) reported a growth of 24% in pre-tax net profit during the fiscal year ending December 31, 2024, to AED 409.3 million, compared with AED 329.6 million in 2023. This rise was made possible by strong trading volumes, capital inflows, and the increased activity of retail and institutional investors.
PC: Finance Middle East
Total revenue was AED 632.3 million for 2024, an increase of 15.5% over the preceding year, made up of AED 353.1 million in operating income and AED 279.2 million from investment returns and other income.
Market Performance and IPO Success
The DFM General Index increased by 27.1% and closed the year at 5,158.67, its highest level since September 2014. After Dubai achieved its largest annual gain in three years, it is now the best-performing market in the GCC for two consecutive years.
The year saw three successful IPOs, including talabat’s IPO, which turned out to be the largest IPO in the tech sector in 2024. Parkin, Spinneys, and talabat were listed with an amount of AED 10.48 billion, a jump from AED 1.97 billion in 2023.
Market Capitalization and Trading Activity
DFM’s market capitalization rose by 32%, reaching AED 907 billion, above AED 688 billion last year. The ADTV figures show an uptick of 5% to AED 423 million. The total traded value has also risen by 5.5%, bringing it up to AED 107 billion.
Retail investors accounted for a large part of total trading activity, accounting for 35%. This naked interest was unmatched in IPOs, with Spinneys and Parkin increasing their tranches for retail investors in light of strong demand.
Foreign and Institutional Investor Growth
DFM onboarded 138,262 new investors, a rise of 120.5% from 62,676 in 2024, of which 85% were foreign investors. Foreign investors accounted for 50% of total trading value, up from 47% in 2023, and had a 21% share of market capitalization.
Participation of institutional investors rose to 65%, up from 58% in 2024, as the growing interest of the market.
Dividend Proposal and Remarks from Joined Leaders
The Board of Directors endorsed DFM’s financial results for 2024 in its final proposal recommending a cash dividend of AED 256 million (3.2% of capital). This shows that 97% of total retained earnings are available for distribution.
The Exchange’s success reinforces Dubai’s standing as a global financial hub, with records in IPO’s, trading volume, and participation by foreign investors, said Helal Al Marri, Chairman of DFM.
Hamed Ali, CEO of DFM and Nasdaq Dubai, asserted that DFM’s innovation-led direction has transformed the business, expanding opportunities for investors and issuers.
Market Outlook and Strength
The fourth year of growth for DFM represents investors’ deep confidence and the continuous market dynamics in Dubai. With retail investors being able to access the exchange more easily, and an optimistic view for the future, it is setting the course for financial markets.
