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Earnings Report

Dubai Financial Market

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Dubai Financial Market (DFM) reported its Q1 2026 results, delivering a strong performance, driven by higher trading activity, liquidity, and increased investor participation.

2. Financial Performance Snapshot

  • Total revenue: AED 253.1M (+36% YoY)

  • Operating income: AED 171.9M (strong growth YoY)

  • Investment & other income: AED 81.2M

  • Profit before tax: AED 193.3M (+43% YoY)

  • Net profit: AED 177.7M (+40% YoY approx.)

  • EPS: AED 0.022 (vs 0.016 YoY)

  • Cost base: AED 59.8M (+16% YoY)

3. Operational Highlights & Key Metrics

  • Average Daily Trading Value (ADTV): AED 1.03B (+56% YoY)

  • Total traded value: AED 61B (+48% YoY)

  • New investors added: 20,702 (79% international)

  • Foreign investor contribution: 54% of total trading value

  • Institutional investor share: 70% of trading value

  • Market capitalization: AED 897B

4. Key Performance Drivers

DFM’s Q1 performance was primarily driven by significantly higher trading volumes and liquidity, as reflected in the sharp increase in ADTV and total traded value, highlighted in the press release (page 1).

Key drivers included:

  • Strong increase in trading activity, boosting commission and fee income

  • Higher participation from institutional and foreign investors, improving market depth

  • Growth in investment income, contributing meaningfully to total revenue

  • Operating leverage, where revenue growth outpaced expense growth (+36% vs +16%), supporting profit expansion

Despite a 10.1% decline in the index during March, overall activity remained strong, reflecting resilient market participation and liquidity.

5. Outlook & Forward Guidance

DFM remains focused on enhancing market accessibility, deepening liquidity, and expanding investor participation, supported by Dubai’s strong economic fundamentals.

Future performance will depend on:

  • Sustained trading activity and liquidity levels

  • Continued inflows from international and institutional investors

  • Market conditions and index performance

  • Ongoing development of market infrastructure and product offerings

6. 🧾 Investor Takeaway

DFM delivered strong earnings growth driven by higher trading activity and liquidity, highlighting the sensitivity of its business model to market volumes and investor participation.