Brokerage firms at the Dubai Financial Market (DFM) have experienced a substantial uptick in new investor accounts throughout 2023, recording a robust 12.5 percent increase compared to the previous year.
Factors driving growth
The listing of government and semi-government companies at DFM served as a catalyst for the impressive growth in new investor accounts. This move generated increased interest and confidence among potential investors, contributing to the overall expansion of the market.
Another significant factor influencing the surge is the increasing popularity of online trading platforms. As digitalization continues to reshape the financial landscape, investors are gravitating toward the convenience and accessibility of online trading. This plays a major role in the surge in new accounts at DFM.
A notable spike in new accounts occurred in December, with a staggering year-on-year increase of 184 percent. During this month, DFM recorded 6,088 new accounts, underscoring the robust demand from investors.
This growth was particularly due to the initial public offering (IPO) of the Dubai Taxi Company. Investors were seeking to capitalize on the IPO of the government-owned taxi service. Therefore, the enthusiasm surrounding this offering contributed significantly to the substantial growth witnessed in the last month of the year.
This influx of new investor accounts is poised to strengthen DFM, injecting the potential for greater liquidity and heightened trading activity. Fresh capital and increased market participation are good signs for the overall health and vibrancy of the financial ecosystem in Dubai.
Dubai’s financial market
The listing of Dubai Taxi Company among other government-owned companies falls under Dubai’s plan to list 10 state-owned companies. Hence, Dubai aimed to increase the size of its financial market to AED3 trillion. The government-owned companies on DFM include Dubai Electricity and Water Authority, TECOM, Salik, and Empower.
Brokerage firms’ performance
In addition to the surge in new investor accounts at DFM, the 29 brokerage firms operating in DFM executed an impressive 3.83 million transactions in 2023. This represents a remarkable 32.7 percent increase compared to the 2.88 million transactions recorded in 2022. The surge in transaction volume further underscores the growing dynamic of Dubai’s financial landscape.
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