Dubai Bourse Surges on Record Trading and Investor Influx

Dubai Financial Market reported a significant surge in trading activity and investor participation in the first quarter of 2025, marking its strongest quarterly performance in over a decade. The exchange achieved an Average Daily Trading Value of AED 663 million, reflecting a 67% increase compared to the same period in 2024. Total traded value escalated to AED 41 billion, up from AED 25.5 billion year-on-year.

This heightened trading activity propelled DFM’s consolidated revenue to AED 186.5 million for the quarter, a notable rise from AED 148.1 million in Q1 2024. The revenue breakdown includes AED 86 million from operating income and AED 100.5 million derived from investment returns and other income streams.

The exchange's robust performance is attributed to increased investor engagement, with a substantial influx of new participants. In 2024, DFM onboarded 138,262 new investors, marking a 120.5% increase from the previous year. Notably, 85% of these new investors were foreign nationals, underscoring the exchange's growing international appeal. Foreign investors contributed to 50% of the total trading value in 2024, up from 47% in 2023.

Institutional investor activity also saw a significant uptick, accounting for 65% of the trading value in 2024, compared to 58% the previous year. This shift indicates a growing confidence among institutional players in the market's stability and growth prospects.

Retail investors maintained a strong presence, contributing to 35% of the total trading activity in 2024. This segment's influence was particularly evident during major IPOs, where retail tranches were expanded to meet the high demand. For instance, Spinneys increased its retail tranche from 5% to 7%, while Parkin raised its tranche from 10% to 12%.

DFM's market capitalization experienced a substantial increase, reaching AED 907 billion in 2024, a 32% rise from AED 688 billion in 2023. The DFM General Index also reflected this growth, surging by 27.1% to close at 5,158.67, its highest level since September 2014.

The exchange's IPO market demonstrated remarkable vitality, with three significant listings in 2024: Parkin, Spinneys, and talabat. These offerings collectively raised AED 10.48 billion, a substantial increase from AED 1.97 billion raised through IPOs in 2023. Talabat's listing was particularly noteworthy, standing out as the largest global tech IPO of the year.

DFM's strategic initiatives to enhance accessibility for retail investors have played a pivotal role in this growth. The launch of the upgraded iVestor App in 2024 provided investors with streamlined digital financial management tools, including seamless onboarding, direct IPO subscriptions, portfolio management, and dividend tracking. Additionally, the IPO Upgrade Program enabled investors to enhance their subscriptions by up to five times through leverage, increasing their potential allocation in IPOs.

The exchange's efforts to engage with international investors were further bolstered by its international investor roadshow in 2024, held in collaboration with HSBC in London. This event featured 12 top-listed companies with a combined market capitalization of AED 326 billion and recorded a 20% increase in investor engagements compared to previous years.