Dubai Financial Market Returns to Profit in 2012 After ReboundZahra Hankir
Dubai Financial Market PJSC, the only publicly traded Gulf Arab bourse, said it returned to profit in 2012 as trading volume in the Persian Gulf business hub rebounded and the measure rallied the most in the region.
Profit for the year was 35.2 million dirhams ($9.6 million) after a loss of 6.9 million dirhams in 2011, the company said in an e-mailed statement today. That missed the 47.6 million-dirham median estimate of three analysts, according to data compiled by Bloomberg. Full-year revenue rose 8.2 percent to 191 million dirhams.
“DFM company is heading into a new phase of development and growth thanks to the thriving economic climate” in Dubai, said chairman Abdul Jalil Darwish.
Dubai’s benchmark DFM General Index was the best performer in the Gulf Cooperation Council in 2012, with an advance of 20 percent compared with a gain of 3.7 percent for the region’s Bloomberg GCC 200 Index. The average daily trading volume last year was 60 percent higher than in 2011, data compiled by Bloomberg show. The measure extended its rally in January with a gain of 16 percent, the best start of the year on record.
The rally is being buttressed by a recovery in Dubai, whose economy may have expanded 5 percent in 2012, the fastest pace since 2007, according to government estimates. Property prices in the emirate, home to the world’s tallest skyscraper, rose in some neighborhoods last year after the crash sent them tumbling more than 60 percent from mid-2008 peaks.
Dubai Financial Market shares were unchanged at 1.2 dirhams in Dubai trading today, valuing the company at 9.6 billion dirhams. The United Arab Emirates, the second-biggest Arab economy, has three equities bourses, Nasdaq Dubai, Dubai Financial Market and Abu Dhabi Securities Exchange.