Did you know Dubai Financial Market (DFM) is the first financial market to abide by the ‘Islamic Sharia’ rules, in the world? Interesting! Isn’t it? We all know, that Dubai is establishing itself as, a financial powerhouse in the Gulf.
Well, DFM is more than just a hub for global finance. It’s a strong player in the Gulf region’s economic growth. However, this blog will guide you through the most important aspects of the Dubai Finance Market, providing insights for regional investors and business leaders. Excited? So, let’s get started!
What is the Dubai Financial Market?
The Dubai Financial Market (DFM) is one of the leading financial exchanges in the Gulf region, playing a pivotal role in the economic landscape of Dubai and the broader United Arab Emirates (UAE). Indeed, Founded in 2000, the DFM has become a strong pillar of the region’s financial infrastructure, attracting a wide range of, investors and companies.
Undoubtedly, the Dubai Financial Market operates as a secondary market for trading securities issued by public joint-stock companies, bonds issued by the federal government or any of the local governments and public institutions in the UAE, investment units issued by investment funds, and any other financial instruments, local or foreign, which are accepted by the market.
Nevertheless, talking about the key points of DFM, the main purpose of it is to facilitate trading, settlement, clearing, and depository services for securities like stocks and bonds. Additionally, it aims to create an efficient, transparent, and liquid environment for investors and market participants. And, people from all, around the world come to the DFM to accelerate their wealth and businesses. And, the DFM operates after 10:00 AM GST with live market data available, at that time.
Now let’s know the recent performance and key statistics
Interestingly, as of 2024, the DFM has reported remarkable financial performance. In the first quarter of 2024, the DFM posted a net profit before tax growth of 171%, reaching AED 95.6 million, compared to AED 35.3 million in the same period of the previous year. However, this surge is attributed to increased trading activities and a steady inflow of Initial Public Offerings (IPOs).
Let’s know the initial public offering (IPO) and the listing of DFM
Indeed, the DFM has become a favored destination for companies looking to go public. The process of, listing on the DFM is streamlined and supported by a strong regulatory framework, ensuring transparency and efficiency.
Market data of the region’s leading financial exchange.
| COMPANY | VALUE | VOLUME | PRICE |
| EMAAR | 8,772,395.58 | 1,089,195 | 8.060 |
| ARMX | 6,049,024.88 | 2,403,673 | 2.520 |
| DFM | 5,051,163.56 | 4,036,428 | 1.260 |
| DIC | 4,213,174.50 | 2,069,220 | 2.040 |
| AIRARABIA | 4,165,537.25 | 1,689,582 | 2.470 |
| DIB | 3,803,805.12 | 654,721 | 5.810 |
(Note: The above numbers were recorded on 11th July 2024 at 10:30 AM)
How does Dubai financial market work?
● LSEG Data Platform
The LSEG Data Platform at the Dubai Financial Market (DFM) is like a digital hub for financial information. However, it collects real-time data about stocks, bonds, and other financial instruments traded on the DFM.
Think of it as a giant library where investors, traders, and analysts can access up-to-date numbers, charts, and reports. And, this data helps them make informed decisions about buying or selling investments.
● Eikon
Eikon is a powerful financial data platform, used in the Dubai Financial Market (DFM). Moreover, think of it as a digital toolbox for investors and traders. But, how it works? Eikon provides real-time information on stocks, bonds, and other financial instruments traded on the DFM. Therefore, it’s like having a live dashboard of market activity.
However, investors can explore historical data, which is validated, and cleansed to analyze trends and make informed decisions. Also, Eikon’s end-of-day historical data and Tick History services cover all DFM historical data. And, Eikon’s desktop platform offers value-add analytics, daily charts, and corporate action data. Plus, it integrates Reuters global news for real-time insights.
● Knowledge Direct
Interestingly, Knowledge Direct is an electronic platform that allows investors to trade securities through licensed brokerage firms. Besides, it operates seamlessly through licensed brokerage firms, making it easy for investors to buy and sell stocks.
Here the DFM provides information and data to help investors make informed decisions. And, you can trade securities, on both DFM and Nasdaq Dubai using the same trading platform and Investor Number (NIN).
Additionally, the DFM aims to create an efficient, transparent, and liquid environment for trading, clearing, settlement, and depository of, securities here.
● LSEG DataScope Select
LSEG DataScope Select is a platform that provides access to a wide range of financial information, and reference data, including pricing, and analytics across various asset classes. Specifically for the Dubai Financial Market (DFM), it offers real-time and delayed data, for equities, sukuks, ETFs, and soon-to-be equity derivatives.
Here you can access DFM data through different channels like low-latency data, for real-time trading. And, desktop services for analytical tools and end-of-day valuation. Additionally, historical data can be used to find years of validated and cleansed historical data. Also corporate actions for timely updates on dividends and other actions. Therefore, some benefits include consistent data format for easy adoption globally. Full-depth market data is available.
● LSEG On Demand
LSEG On Demand is a delivery channel for LSEG content and capabilities, allowing clients to customize the information they receive on a bespoke basis. Importantly, LSEG On Demand, takes a consultative approach, providing efficient, timely custom solutions. Therefore, clients can tailor the data they want, whether market insights, analytics, or specific reports.
You can access LSEG On Demand through various products, including the LSEG Data Platform. Indeed, this platform ensures a consistent data experience, enabling faster deployment of applications and workflow-critical analytics. Therefore, you can also stay informed with real-time insights from Reuters, fully integrated into LSEG platforms.
● LSEG DataStream
LSEG DataStream is a powerful platform that provides financial data and insights. Specifically for the Dubai Financial Market (DFM)! However, LSEG DataStream offers real-time and delayed data for equities, sukuks, ETFs, and soon-to-be equity derivatives traded on the DFM.
You can access this data in ways tailored to your needs like low-latency data for real-time trading. Their desktop Services for deep analytical tools. Also, end-of-day valuation for risk management.
The features and benefits of the Dubai Financial Market (DFM)
- DFM is the leading financial market in the region. Indeed, it serves as a successful platform for raising capital, listing securities, and trading across various asset classes.
- Thus, DFM provides access to global markets through a smart ecosystem. And, individuals and businesses can grow and accelerate their investments and wealth sustainably.
- Over 70 equities, ETFs, and REITs are listed on DFM, with a total market capitalization of AED 582 billion, as of 2022.
- Also, in 2022, DFM facilitated capital raising of AED 31.15 billion through five initial public offerings (IPOs).
- Interestingly their investor base is strong! DFM boasts 1 million+ local and international investors from 212 nationalities, providing liquidity and active trading.
- DFM operates on a robust technology platform, ensuring efficient trading and market activities.
- Regulated by the UAE Securities and Commodities Authority (SCA), DFM sticks to international best practices to protect investors.
- DFM plays, an important role in empowering economic development in the UAE, where the East meets the West.
End Note
As we conclude, we realize the future of the Dubai Financial Market looks brighter than ever. As we see, Dubai continues to lead the way in financial innovation and growth within the Gulf. Now that you know that, the Dubai Financial Market offers endless opportunities for Gulf investors. Don’t miss out on the chance to grow your wealth in this dynamic market! And if you enjoyed this blog, share it with your friends and grow together.
Also Read: An Essential Guide to Property Investment in Dubai
