Unprecedented Growth in Investor Accounts at Dubai Financial Market
DUBAI, August 1, 2024 (WAM) - The Dubai Financial Market (DFM) has experienced a substantial increase in the number of new investor accounts, with a total of 56,345 accounts opened during the first seven months of 2024. This marks an 85% increase compared to the same period last year, which recorded 22,700 new accounts. This growth highlights the market's attractiveness and the strong investor interest in recent high-profile listings.
The surge in new accounts can be attributed to several factors, including the successful initial public offerings (IPOs) of companies like "Parkin" and "Spinneys." These IPOs have attracted significant attention from both local and international investors, contributing to the overall growth in the market.
Monthly Growth Breakdown
The monthly breakdown of new accounts opened is as follows:
The month of March saw the highest increase, with a total of 16,574 new accounts, reflecting a particularly strong investor response to market conditions and listings.
Leading Brokerage Firms
The growth in new accounts has been driven by several key brokerage firms, which have been instrumental in facilitating investor access to the market:
BHM Capital Financial Services led the way with the highest number of new accounts, showcasing their strong market presence and customer engagement.
Market Activity and Trading Volume
The DFM has also seen robust trading activity alongside the increase in new accounts. The 30 brokerage firms operating in the market executed over 2.57 million transactions involving 58.4 billion shares, with a total value exceeding AED 114.5 billion in the first seven months of 2024.
This level of activity demonstrates the market's liquidity and the high level of investor engagement, further solidifying the DFM's position as a leading financial hub.
Economic Context and Investor Sentiment
The growth in the DFM can be attributed to a favorable economic environment in Dubai and the broader UAE. Factors such as economic diversification, strategic infrastructure projects, and supportive government policies have enhanced market confidence. Additionally, regulatory reforms aimed at increasing market transparency and accessibility have made the DFM more attractive to investors.
Related News:
The DFM's impressive growth trajectory and the significant increase in new investor accounts and trading volumes underscore a positive outlook for the market. This continued momentum reflects both strong economic fundamentals and a confident investor base, making the DFM an essential player in the regional financial landscape.
DUBAI, August 1, 2024 (WAM) - The Dubai Financial Market (DFM) has experienced a substantial increase in the number of new investor accounts, with a total of 56,345 accounts opened during the first seven months of 2024. This marks an 85% increase compared to the same period last year, which recorded 22,700 new accounts. This growth highlights the market's attractiveness and the strong investor interest in recent high-profile listings.
The surge in new accounts can be attributed to several factors, including the successful initial public offerings (IPOs) of companies like "Parkin" and "Spinneys." These IPOs have attracted significant attention from both local and international investors, contributing to the overall growth in the market.
Monthly Growth Breakdown
The monthly breakdown of new accounts opened is as follows:
- January: 4,465 new accounts
- February: 5,557 new accounts
- March: 16,574 new accounts
- April: 9,957 new accounts
- May: 8,026 new accounts
- June: 6,223 new accounts
- July: 5,543 new accounts
The month of March saw the highest increase, with a total of 16,574 new accounts, reflecting a particularly strong investor response to market conditions and listings.
Leading Brokerage Firms
The growth in new accounts has been driven by several key brokerage firms, which have been instrumental in facilitating investor access to the market:
- BHM Capital Financial Services: 21,565 new accounts
- Emirates NBD Securities: 14,130 new accounts
- Al Ramz Capital: 7,115 new accounts
- ADIB Securities: 3,313 new accounts
- International Securities: 3,071 new accounts
- Mashreq Securities: 2,631 new accounts
- Other notable contributors include FAB Securities, EFG Hermes (UAE), ADCB Securities, and HSBC Middle East Securities.
BHM Capital Financial Services led the way with the highest number of new accounts, showcasing their strong market presence and customer engagement.
Market Activity and Trading Volume
The DFM has also seen robust trading activity alongside the increase in new accounts. The 30 brokerage firms operating in the market executed over 2.57 million transactions involving 58.4 billion shares, with a total value exceeding AED 114.5 billion in the first seven months of 2024.
This level of activity demonstrates the market's liquidity and the high level of investor engagement, further solidifying the DFM's position as a leading financial hub.
Economic Context and Investor Sentiment
The growth in the DFM can be attributed to a favorable economic environment in Dubai and the broader UAE. Factors such as economic diversification, strategic infrastructure projects, and supportive government policies have enhanced market confidence. Additionally, regulatory reforms aimed at increasing market transparency and accessibility have made the DFM more attractive to investors.
Related News:
- Dubai Financial Market announces 74% rise in pre-tax net profit in H1 2024
- DFM saw 10x more new investors in Q1 2024 than in the five years before 2019
- Over 57,000 new investors flocked to Dubai Financial Market in 2023, driving 12.5% growth in new accounts
The DFM's impressive growth trajectory and the significant increase in new investor accounts and trading volumes underscore a positive outlook for the market. This continued momentum reflects both strong economic fundamentals and a confident investor base, making the DFM an essential player in the regional financial landscape.