Dubai Financial Market : DFM Integrated Report 2023

OVERVIEW

1

DUBAI FINANCIAL MARKET (PJSC)

INTEGRATED

2023

2		ANNUAL REPORT

Dubai Financial Market (PJSC)

Integrated Report 2023

Dubai Financial Market, P.O.Box: 9700

Dubai UAE. T: [phone]

Email: [e-mail]| Website: www.dfm.ae

Disclaimer

Dubai Financial Market (DFM) endeavors to provide and publish correct real-time data and information however it is not guaranteed to be timely or accurate and is for knowledge purposes only. DFM shall not assume any responsibility for any diminution, error and/or delay of data and information published. Consequently, DFM will not be liable for any claim or loss of any nature that may occur directly or indirectly, from the use of the data and information available at DFM or in any of its publications.

Copyright © 2024, Dubai Financial Market PJSC. All Rights Reserved.

Published on 15 March, 2024

3

H.H. Sheikh Mohammed bin Rashid Al Maktoum

Vice President and Prime Minister of the UAE, and Ruler of Dubai

4

ANNUAL REPORT

5

TABLE OF CONTENTS

01	OVERVIEW
08	About DFM	20	Year in Review
	15	2023 Market Highlights	22	Investment Case
	17	Our Investors	24	Executive Management
	18	Our Story

02	STRATEGIC REPORT
30	Chairman's Statement	40	Market Performance
	32	CEO's Message	44	CFO's Review
	34	Our Business Model	46	Risk Management
	36	Our Strategic Priorities	50	Business Review
	38	Economic & Regulatory Overview

03	SUSTAINABILITY
66	CEO's Message	78	ESG Products and Listings
	68	Sustainability Reporting in the UAE	80	Carbon Credits Trading Pilot
	70	Sustainability Timeline	82	Promoting Best Practice
	72	Sustainability Context	83	Delivering a Sustainable Future
	74	Key Stakeholders	86	Being a Responsible Business
	75	Materiality Process	90	Empowering Our Employees
	76	2023 Highlights

04	CORPORATE GOVERNANCE
94	Corporate Governance Report
	122	Fatwa and Shari'a Supervisory Board Report
05	FINANCIAL STATEMENTS
126	Independent Auditor's Report	133	Consolidated Statement of Changes in Equity
	130	Consolidated Statement of Financial Position	134	Consolidated Statement of Cash Flows
	131	Consolidated Statement of Profit or Loss	135	Notes to the Consolidated Financial Statements
	132	Consolidated Statement of Comprehensive
		Income

6		ANNUAL REPORT

01.

OVERVIEW

Discover a trailblazing market in a dynamic and diversified international financial hub, providing unprecedented opportunities to leverage positive momentum, capitalize on growth, and 'Go Global from Dubai'.

OVERVIEW

7

8		ANNUAL REPORT

OVERVIEW	9

ABOUT

DFM

WHO WE ARE

Established in 2000, the Dubai Financial Market (DFM) serves as a leading platform for IPO, listing securities, and trading across diverse asset classes. It provides a pivotal role in servicing the primary and secondary capital markets, offering unparalleled services to

local and international investors and issuers alike.

DFM leverages integrated operations with its subsidiary Dubai Central Clearing and Depository and its sister exchange Nasdaq Dubai to seamlessly connect various market participants locally, regionally, and globally.

OUR MARKET

80.66%33.3%

66.7%

CSD CCP

BROKERS

OUR MISSION

We contribute to the growth of the Dubai economy by creating a global financial markets hub, providing seamless accessibility through a smart, fluid ecosystem conducive to growing investments, wealth of individuals and businesses in an accelerated and sustainable way.

OUR VISION

We believe in accelerating tomorrow and in the potential of people, businesses, ideas and ambitious visions.

INVESTORS

	DILIGENT:
	We work with care and rigor. The details make the difference.
	OPEN:
	We are aware that the world is constantly changing around us. We seek out new and
	different ideas, opinions, and points of view.
	COLLABORATIVE:
OUR	We are in this together, working hand-in-hand for growth and prosperity, when our clients'
businesses thrive, we thrive too.
VALUES	DETERMINED:
	We approach our work with the end goal in mind and have a relentless spirit that

Dubai Central Securities Depository LLC (Dubai CSD) is the first independent central securities depository services company in the UAE. A subsidiary fully owned by DFM, safeguards market securities. It manages post-trade services, fostering close ties with listed companies. Responsibilities include administration, safe custody, registration, depositing, and ownership transfer.

Dubai Clear LLC, handles clearing, settlement, and risk management for DFM to operate its central counterparty (CCP) business for securities clearing and settlement.

Nasdaq Dubai, regulated by DFSA, is an Authorized Market Institution within DIFC, acting as a financial exchange and clearing house. Operating in a jurisdiction with an independent legal system based on English law, it serves as a global financial hub connecting Western Europe and East Asia.

ensures results.

PROACTIVE:

We take actions intended to cause change, rather than reacting to change.

OUR REGULATORS

Securities and Commodities Authority (SCA): DFM is subject to the regulatory authority of the Securities and Commodities Authority, a federal authority in the United Arab Emirates.

Dubai Financial Services Authority (DFSA): within DIFC, regulates Nasdaq Dubai, functioning as the securities supervisory authority. Operating independently, DFSA adheres to global standards, overseeing the Official List of Securities and approving Issuer Prospectuses in its jurisdiction.

10		ANNUAL REPORT

OUR PEOPLE

TOTAL	Female Employees	49%
138EMPLOYEES	Emiratization 46%
Female Board Members 22%
NUMBER OF
16 NATIONALITIES
OUR SHAREHOLDERS
#26,309 SHAREHOLDERS	8 BILLION ISSUED
	COMPANY				SHARES
By Ownership	By Nationality
Borse Dubai 80.66%			UAE 94.05%
Public Stake 19.34%			Foreign 3.39%
			Arab and GCC 2.56%

OVERVIEW

11

12		ANNUAL REPORT

DUBAI FINANCIAL MARKET PJSC

SHARE INFORMATION

Listing Date	MARCH 2007	Market Cap as of	AED 11.12 billion
		31 December 2023
Exchange	DUBAI FINANCIAL	Last Trading	AED 1.51
	MARKET	Day 2022
Symbol	DFM	Last Trading	AED 1.39
		Day 2023
ISIN	AED000901010	Change	(7.947%)
Number of Shares	8,000,000,000	High	AED 1.71
Issued
Foreign	49%	Low	AED 1.16
Ownership Limit

CONSTITUENT OF A

GLOBAL INDEX

FTSE4GOOD INDEX

DUBAI FINANCIAL MARKET PJSC

FINANCIAL HIGHLIGHTS 2023

(MILLIONS)

AED 547.4	AED 407.1
+54%	74%
	CONSOLIDATED		EBITDA & EBITDA
	REVENUE		MARGIN

TOTAL REVENUE MIX (%)

Trading Fees	41%
Investment Income	36%
Other Fees & Income	23%

OVERVIEW

13

AED 329.5

+129%

NET PROFIT

14		ANNUAL REPORT

A UNIQUE GLOBAL FINANCIAL HUB

Dubai stands as an unparalleled destination in the world's	world-class working environments that empower local
financial landscape, propelled by forward-thinking visionaries,	talent while enticing the brightest minds worldwide.
a thriving economy, cultural diversity, and an exceptional	This unwavering commitment to excellence drives
foundation for fostering business expansion and sustainable	comprehensive growth, solidifying Dubai as the benchmark
prosperity, attracting global investors and enterprises alike.	for sustainable economic success and resilience.
As a global economic powerhouse, the focus remains on

OVERVIEW	15

2023 MARKET HIGHLIGHTS

#1 Best performing equity market index in GCC, rising

+21.7% Dubai Financial

Market General Index Performance 1

#1 Global Destination2

Dubai ranked 1stregionally and 8th internationally in the Global Power City Index 20233

UAE ranks 10th most competitive economy

globally and #1 in MENA4

66	AED 138 BILLION
Equity Listings	Total Funds Raised
in Dubai*	since inception*

AED 403 MILLION	AED 101 BILLION
+13%	+12%
Average Daily Value	Total Traded Value

155	33
Bonds & Sukuk listed,	UAE & Regional
valued over	Equity Futures*
USD 132 billion*

AED 688 BILLION

+ 18%

Total Market

Capitalization

AED 1.97 BILLION

IPO Capital

Raised in 2023

3

Index Futures*

1 Dubai Financial Market General Index (DFMGI) Performance 2023

2 Tripadvisor Travellers' Choice Awards 2023

3 Mori Memorial Foundation's Institute for Urban strategies in Japan 4 IMD World Competitiveness Ranking 2023

*Includes DFM and Nasdaq Dubai

16

ANNUAL REPORT

OVERVIEW	17

OUR

INVESTORS

1+ MILLION	200+
TOTAL MARKET INVESTORS	NATIONALITIES

62,676 NEW INVESTORS ONBOARDED

58%	INSTITUTIONAL	73%	FOREIGN
INVESTORS	INVESTORS
	TRADING SHARE		ONBOARDED

20%	FOREIGN	47%	FOREIGN
OWNERSHIP	INVESTORS
	OF MARKET CAP		TRADING SHARE

18		ANNUAL REPORT

OUR STORY

OVERVIEW	19

OVER TWO DECADES OF CONTINUOUS GROWTH AND INNOVATION

Since it was established in 2000, DFM has been on an exciting journey to raise Dubai's standing as a leading global financial center by launching new offerings, attracting investments and enhancing governance to drive growth and diversification of Dubai's economy.

2014-2018

				2021-2022
			2021 Announcement of the Dubai Securities
			and Exchange Higher Committee for
			Development of Dubai's financial
	2019-2020
		markets, including the upcoming
			listings of ten government and
2019 Launched first guide to ESG	private companies, the launch of an
AED 2 billion Market Making Fund,
	reporting.
	and establishment of AED 1 billion
	Launched the DFM Shari'a
	IPO Fund focusing on technology
	Index (DFMSI).
	companies, as well as a range of
	Established Dubai Clearing

2000-2006

2000 The first exchange in the UAE, DFM was established as a public institution with an independent legal entity by virtue of Decree 14/2000 issued by the Government of Dubai.

2006 The first regional exchange to transform into a public shareholding company, floating 20% of its AED

8 billion capital, offered through an IPO that met great demand and subscriptions amounting to AED 201 billion.

2007-2010

2007 The listing of DFM Company on its own market with the trading symbol DFM. The DFM became the first Shari'a-compliant exchange globally, as part of the ambitious vision of the Dubai Government to transform Dubai into a global leader in Islamic Finance.

2010 Operational consolidation with Nasdaq Dubai to create a dynamic force in the region's capital markets, offering investors a greater choice of asset classes and accessibility to DFM and Nasdaq Dubai's listed securities via a single Investor Number (NIN).

2011-2013

2011 Lead the digital transformation in the capital markets sector through innovative solutions that reshaped investor experience, including the iVestor Card for cash dividend distribution, the eFSAH system and mobile apps.

2013 Played a pivotal role in the upgrade of the UAE to "Emerging Market" status by international rating agencies such as

MSCI and S&P Dow Jones by contributing to high standards and international best practices, including introduction of Delivery versus Payment and Securities Lending and Borrowing.

2014 First exchange to develop IPO Platform, solution for online subscription directly linked with receiving banks, enabling immediate listings after the IPO.

2018 First exchange to launch its Sustainability Strategy, aiming to transform DFM into the leading sustainable exchange in the region by creating long-term shared values for DFM stakeholders by 2025.

& Central Depository	significant structural and regulatory
best-practice reforms.
Holding LLC.
2020 First regional market	2022 DFM successfully listed 5 new IPOs,
to offer derivatives on	launched a new general index,
regional equities (futures	and welcomed further interest
on single stocks) as part	from international investors. Our
of its diversification plan.	achievements in 2022 included
Upgraded its trading,	enhanced accessibility, increased
surveillance, clearing and	market making activity and product
market data dissemination	diversification, leading to our
system to the world-	improved market depth and breadth.

class Nasdaq Financial Framework (NFF) and launched the S&P/ Hawkamah UAE ESG Index.