Dubai Financial Market's net profit dropped by 30 per cent to Dh139.6 million during the first six months of 2016 compared to Dh200 million reported in the same period last year.

The fall in the net profit is attributed to slowdown in trading activity. The DFM trading value declined 32.7 per cent to Dh69.5 billion during the first six months of this year compared to Dh103.4 billion in the corresponding period of last year. Trading commissions represent the main revenue stream of the company.

Essa Kazim, chairman of Dubai Financial Market said: "The slowdown in trading activity during the first half of 2016 has overshadowed the revenue and profit of the DFM Company. Meanwhile, the market has demonstrated a high level of resiliency considering the unfavorable circumstances of lower oil prices as well as international markets' volatility."

The net profit of the second quarter of 2016 reached Dh53.5 million, showing a 60 per cent decrease compared to the same period in 2015 level of Dh132.4 million.

The company recorded total revenue of Dh227 million in the first half of 2016 compared to Dh292.6 million during the same period in 2015. The revenue comprised of Dh184.8 million of operating income and Dh42.2 million of investment returns.

The company expenses reached Dh92.7 million compared to Dh92.5 million recorded during in the first half of 2015. During the second quarter of 2016, the company's revenue reached Dh100 million compared to Dh178.1 million in the second quarter of 2015, whilst expenses amounted at Dh46.5 million in the same period compared to Dh45.7 million during the second quarter of 2015.

The DFM General Index has been one of the best performing amongst leading indices globally advancing more than five per cent during the first half.

Additionally, foreign investors, excluding Arabs and GCC nationals, have increased their participation on the market from 16 per cent during the first half of 2015 to 17 per cent during the same period of 2016 and they were net buyers of Dh1.4 billion, a 53.6 per cent increase, which clearly underlines their growing confidence in the market.

The DFM has received a cost-free plot of land exceeding 10,000 square meters with approximate value of Dh231 million from Dubai Properties in order to build the new headquarter.

Kazim said: "We are emphasising on building a smart and sustainable headquarter in line with our "Smart Borse" strategy and the leading position of Dubai as a global financial hub."

Cash dividend distribution

During the first half of this year, DFM has successfully accomplished the cash dividend distribution for the financial year 2015 for the fifth consecutive year. Dh10.5 billion of cash dividend has been disseminated to 223,000 investors.

The number of listed companies that have outsourced the dividend distribution process to DFM increased from 13 companies during the previous year to 26 companies this year. -