Robust presence of international and institutional investors
Commenting on the key indicators of the DFM performance during the first nine months of 2021, His Excellency Essa Kazim, Chairman of the Dubai Financial Market Company (PJSC), said: “The Market Capitalization of DFM-listed securities has increased 15% to AED 392.2 billion and the General Index advanced by 14.2% in spite of the 23.7% decline in trading value to AED 38.7 billion compared to its level during the corresponding period of 2020. Moreover, foreign investors maintained their strong presence with 47.5% market share of trading value. They were also net buyers of AED 1.3 billion and their ownership of the market capitalization reached to 18.5% at the end of September 2021. Similarly, institutional investors accounted for 44% of trading activity with a net purchase of AED 429 million. This clearly indicates UAE’s and international investors’ deep confidence in DFM’s prospects and diversified opportunities.”
“The DFM has attracted numerous retail and institutional investors alike adding up 3799 new investors to the market, including 467 institutions, and bringing total number of its investor base to 849,572 investors from 208 nationalities at the end of September 2021. Foreign investors accounted for 66% of the new investors (2502 investors), representing 81% of the new institutions that have joined the market this year (380 institutions),” H.E. Essa Kazim added.
Ease of investing
The DFM has waived the minimum trading commission from September 1st as part of its numerous initiatives aimed at stimulating and streamlining trading and investment activities as well as promoting retail investors’ participation in the market and enabling them to avail its lucrative investment opportunities. During September also, the DFM decided to extend its trading hours from four hours to five hours daily, which came into effect on 3rd of October 2021, in an endeavor to further strengthen its leading position as a main gateway for investment and to attract wider and more diversified categories of investors, especially the international investors who are constantly showing great interest in the market.
Varied initiatives and unceasing development
According to H.E. Essa Kazim, the DFM has accelerated its efforts during the first three quarters of this year to implement numerous strategic development plans whether in terms of diversification of product offering or enhancement of market regulations in line with the ever growing requirements of market participants and to ensure that the DFM is well-positioned to achieve sustainable growth.
It is noteworthy that the DFM’s leading position amongst the regional markets providing diversified range of financial products and asset classes has gained further momentum this year with the listing of new REITs and ETFs, in addition to the introduction of new equity futures on the individual stocks of 6 listed companies bringing the total number of listed companies that the market provides equity futures on their shares to 11 companies.
About Dubai Financial Market:
Dubai Financial Market (DFM) was established as a public institution with its own independent corporate body. DFM operates as a secondary market for the trading of securities issued by public shareholding companies, bonds issued by the Federal Government or any of the local Governments and public institutions in the country, units of investment funds and any other financial instruments, local or foreign, which are accepted by the market. The DFM commenced operations on March 26, 2000 and became the first Islamic Shari’a-compliant exchange globally since 2007. Following its initial public offering in November 2006, when DFM offered 1.6 billion shares, representing 20 per cent of its paid-up capital of AED 8 billion, DFM became a public joint stock company and its shares were listed on 7 March 2007 with the trading symbol (DFM). Following the IPO, the Government of Dubai retained the remaining 80 per cent of DFM Company through Borse Dubai Limited. www.dfm.ae
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© Press Release 2021