Dubai Financial Market Company (PJSC) today announced its consolidated financial results for the fiscal year ending on December 31 of the year 2021, with net profits of 103.8 million dirhams, compared to 137.9 million dirhams in the year 2020.
Total revenues amounted to 294.6 million dirhams, compared to 337.2 million dirhams. Revenues were distributed at 213 million dirhams from operations and 81.6 million dirhams from investments and others.
The company succeeded in reducing its total expenses by 4%, equivalent to 8.5 million dirhams during the year 2021, to 190.8 million dirhams, compared to 199.3 million dirhams during the year 2020, which reflects the success of efforts aimed at raising spending efficiency.
With regard to the fourth quarter of 2021, net profits recorded a significant jump of 269% to 65.7 million dirhams, compared to 17.8 million dirhams in the same quarter of 2020, and revenues increased by 68% to 111.5 million dirhams, compared to 66.2 million dirhams.
The company’s board of directors discussed, during its meeting today, Monday, January 31, 2022, the financial statements for the year 2021 and approved them in preparation for submission to the annual ordinary general assembly that will be held following the approval of the Securities and Commodities Authority. The Board of Directors also recommended the distribution of cash dividends to shareholders at a rate of 3% of the capital, equivalent to 240 million dirhams.
A new start
Commenting on the most prominent business developments and achievements of the market during the year 2021, H.E. Hilal Al Marri, Chairman of the Board of Directors, said: “The year 2021 marks a new start for the Dubai Financial Market, which has a path full of success. Undoubtedly, our confidence in the future prospects of the market and its ability to achieve Sustainable growth has no boundaries with the strong support of the wise leadership and the various initiatives announced during the past few months by the Supreme Committee for the Development of Financial Markets in Dubai.Moreover, this confidence is also derived from the strong foundations of the market as it has an infrastructure and regulatory World-class, institutional excellence and highly competitive capabilities that qualify it to enhance and sustain its growth and outstanding contribution to consolidating Dubai’s position as a global center for capital markets.”
encouraging signs
Hilal Al Marri added: “The general index recorded an increase of 28.2%, which is the highest annual rise rate for the index since 2013, and the total value of trading increased by 10.2% compared to its levels in the year 2020 to 72.3 billion dirhams, and the total market value of securities increased Listed by 21% to reach 411 billion dirhams, and the market ended the year 2021 strongly, as the total trading value recorded during the last quarter an increase of 126% to 33.6 billion dirhams, representing 46.5% of the total trading value for the year 2021, which is attributed to the steady improvement in the performance of the national economy The encouraging numbers in many major economic sectors such as tourism and real estate, in addition to the performance of listed companies, all of which are supportive of the market performance, crowned by the remarkable positive repercussions of the announcement of the strategic plan for the development of financial markets in Dubai.”
It should be noted that foreign investors maintained their large presence in the Dubai Financial Market during the year 2021, as they acquired 45.8% of the trading value, with a net investment of 1.9 billion dirhams as a purchase proceeds, and their ownership percentage amounted to 22.5% of the total market value of the shares listed in the market at the end of the year. In the same vein, the institutional investment’s share of trading amounted to 45.8%, with a net investment of 656 million dirhams as a purchase proceeds.
The market attracted 7,342 new investors, including 677 investment institutions, bringing the total number of investors registered in the Dubai Financial Market by the end of 2021 to 852,212 investors belonging to 209 nationalities. Foreigners constituted 63% of the new investors (4,626 investors).
