The Dubai Financial Market (DFM) emerged as one of the world’s largest markets in 2023, breaking records and positioning Dubai as a major global investment hub. DFM’s exceptional performance in 2023 propelled it to cross the 4,000-point milestone for the first time in eight years. With a significant increase in trading activity, increased capital inflows, and a notable influx of new investors, DFM showcases its vital role in supporting Dubai and the UAE’s economy and investment landscape.
Performance review
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance of the UAE, and Chairman of the Dubai Securities and Exchange Higher Committee, recently chaired a meeting of the committee. During the meeting, he reviewed Dubai’s achievements in 2023, most notably DFM’s achievements, and upcoming key projects of the committee. Sheikh Maktoum restated Dubai’s ambition to become a global financial hub in alignment with the Dubai Economic Agenda D33.
DFM’s record-breaking performance
Among the most notable achievements DFM made in 2023 is crossing the 4,000-point milestone for the first time in eight years. The increase in trading activity, increased capital inflows and the influx of new investors propelled this growth. Moreover, DFM implemented several initiatives to enhance its digital platform. It also introduced an IPO accelerator program and hosted the MENA IPO Summit.
Due to its tireless efforts, the DFM General Index (DFMGI) ranked 5th globally in 2023, surpassing major global markets. DFM also attracted a staggering 230,000 new investors since 2022. Furthermore, it saw substantial growth in market capitalization, rising from AED582 billion at the end of 2022 to AED688 billion by the end of 2023.
DFM also raised AED34.5 billion in IPO proceeds in 2023, with demand exceeding AED1 trillion since 2021. Moreover, Dubai’s capital market listed 155 bonds and sukuk with a value of AED484 billion on both the DFM and Nasdaq Dubai, emerging as a vital platform for raising capital and securing funding.
New initiatives
Sheikh Maktoum also reviewed the committee’s new initiatives in 2023 which aim to enhance the market depth and liquidity of Dubai’s capital markets. Notably, DFM’s market marker xCube collaborated with the committee in 2023 to improve market accessibility by introducing a digital account opening platform. Moreover, DFM highlighted sustainable financing initiatives through the launch of the Carbon Credit Trading Pilot program at COP28. Furthermore, it boosted its efforts to support the growth of green bonds and sukuk issuance, valued at AED27 billion in 2023.
Regulatory measures
In addition, the Dubai Securities and Exchange Higher Committee established the Financial Markets Law Enforcement Committee in Dubai. This committee formulates processes to monitor financial markets, facilitates business, detects violations, enforces laws, and issues local financial market legislations and incentives to listed companies on DFM.
Read: Parkin’s IPO: Company increases retail share offering in response to high demand
Key listings drive growth
Key listings on DFM in 2023 included the AED22.3 billion IPO of Dubai Electricity and Water Authority (DEWA), constituting 18 percent of its issued capital. In addition, TECOM Group’s IPO raised AED1.7 billion and was oversubscribed by 21 times. Sheikh Maktoum also reviewed other notable listings including Union Coop, Salik, Emirates Central Cooling Systems Corporation (Empower), Dubai Taxi, Taaleem Holdings, Al Ansari Financial Services, and the Parkin IPO.
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