The Dubai Financial Market (DFM) has reported a remarkable surge in new investor accounts during the first quarter of 2024, according to its latest data release. Brokerage firms opened 26,596 new investor accounts during the first quarter of 2024, which marks a 103 percent increase compared to 13,112 accounts during the first quarter of 2023.
New listings drive growth
This surge in new investor accounts at DFM comes amid significant momentum in the market, particularly following the announcement of the listing of government and semi-governmental companies. The recent listing of Parkin, in particular, has enhanced the market’s attractiveness and drawn new investors. Its record-breaking listing on the market reflected great confidence in Dubai’s long-term growth and success.
The distribution of new investor accounts at DFM over the months of the year saw a remarkable year-on-year spike of 151.5 percent in March 2023, with 16,574 new accounts. This coincided with Parkin floating its shares, attracting exceptional interest from international and regional investment institutions, as well as individual investors in the UAE. Hence, its aggregate demand of AED259 billion ($70.52 billion) reflected an impressive oversubscription multiple of 165 times.
Read: Parkin shares jump over 35 percent on first day of trading on Dubai stock market
Increased market liquidity
The surge in new investor accounts bolsters DFM by increasing the potential for greater liquidity and trading activity. With an increased number of participants entering the market, the level of engagement and interest in trading activities increases.
During the first quarter of 2024, 30 brokerage firms operating in the DFM executed over 1.014 million transactions. These transactions involved 22.7 billion shares, with a total value surpassing AED50.9 billion. The substantial transactional activity reflects the vibrancy and dynamism of Dubai’s market, further fueled by the influx of new investors.
For more news on markets, click here.
