H1 2023

Investor Presentation

dfm.ae 1 dfm.ae
Disclaimer

This Investor Presentation has been prepared by Dubai Financial Market PJSC (“DFM” or the “Company”) for investors, solely for informational purposes.

The information contained herein has been prepared to assist prospective investors in making their own evaluation of the Company and does not purport to
be all-inclusive or to contain all the information a prospective or existing investor may desire. In all cases, interested parties should conduct their own
investigation and analysis of the Company and the data set forth in this information.

This presentation may contain statements that are not historical facts, referred to as “forward looking statements.” The Company’s actual future results may
differ materially from those suggested by such statements.

No representation or warranty is made by DFM or any of its advisers, agents or employees as to the accuracy, completeness or reasonableness of the
information in this presentation or provided in connection with it. No information contained in this presentation or any other written or oral communication
in connection with it is, or shall be relied upon as, a promise or representation and no representation or warranty is made as to the accuracy or attainability
of any estimates, forecasts or projections set out in this presentation. No liability will attach to DFM, with respect to any such information, estimates,
forecasts or projections. Unless otherwise stated, DFM owns copyright on the information contained herein. The information may not otherwise be
reproduced and must not be distributed or transmitted to any other person or used in any way without the express approval of DFM.

Please note rounding differences may appear in the presentation.

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H1 2023 Investor Presentation

Economic Highlights

• GCC economies continuing to grow in non-oil sectors against a backdrop of higher

borrowing costs, weaker global growth and lower oil prices according to regional PMI
data for June.

• The S&P Global UAE headline PMI rose to 56.9 in June from 55.5 in May and is the
highest reading in four years.

• Dubai was ranked the best global tourist destination for 2023, welcoming more than
8.5 million visitors in the first half of the year.

• Real estate sector in Dubai recorded exceptional growth with total transactions
reaching AED 285 billion.

• DFMGI rose in the first half of 2023, with its index rising 14% closing at 3,792 points.

Source: Dubai Media Office, Emirates NBD Research 3 dfm.ae

H1 2023 Investor Presentation

UAE holds strong amidst global turmoil with continued positive momentum
Real GDP Growth (%) - 2022 UAE Population Growth (in millions) – supported by social reforms
expats out of total population 2022
7.6
6.8 10.1
9.89 9.99
9.26 9.36 9.48 9.54 9.68
8.54
5

3.6 3.4 3.4 3.2

4.58

1.6 3.13
2.41
1.82
1.01 1.36

UAE India Turkey UK Bahrain Qatar China US 1980 1985 1990 1995 2000 2005 2010 2015 2016 2017 2018 2019 2020 2021 2022

Global Growth in GCC Economies (%) UAE PMI - non-oil sector growth remains strong in June
Threshold level
8.7 60 (0-100 Index (> 50 = improvement since previous month)
8.2
7.7 7.9 58
56
5.2 54
4.3 4.2 4.3 4.2
3.8
52
2.9
3.3 3.3 3.1 3.1
2.7 3 50
2.4
1.8 1.7 48
0.9 46
44
42
GCC UAE KSA Qatar Kuwait Oman Bahrain
40
2022 2023E 2024F

Source: IMD World Competitiveness Yearbook 2022, Federal Competitiveness And Statistics Centre, World Bank, IMF WEO. CBUAE, FCSC 4 dfm.ae
H1 2023 Investor Presentation

Near-term economic growth supported by rebound in domestic activity

Dubai’s Economy Total FDI Flows into Dubai
1600 50
47
• Dubai’s GDP grew 4.6% year-on-year to AED 307.5bn during the first nine months of 2022
40
1200
compared with the same period last year.
26.07 30
• Dubai retains its position as the world’s top destination for FDI projects. Dubai ranked #1 800
20
leading destination city globally [out of 183 cities ranked] for greenfield FDI projects in 2022, 1173
with 837 announced greenfield FDI projects. 400 837 10

0 0
2021 2022

Dubai Economic Agenda D33 FDI Projects FDI Flows (AED bn)

• Dubai revealed an AED 32 trillion economic plan at the start of the year that includes 100
transformative projects and doubling foreign trade and investment over the next 10 years to
Dubai GDP Growth (%)
improve its standing as a global financial hub.
6.2
• Foreign trade is expected to reach AED 25.6 trillion by 2033 as Dubai adds to its global 4
4.6
3.1 3.1 2.7
2.1
partners. The emirate is also looking to attract AED 60billionn/annum in FDIs, and to boost
manufacturing and logistics sector as part of the plan.
2015 2016 2017 2018 2019 2020 2021 9M 2022
• Government spending is forecasted to rise to AED 700bn over the next decade from AED
512bn the previous decade. A key part of the plan is to support the growth of 30 companies to
become unicorns in the next 10 years.
-11.8

Source: Arqaam,, Dubai Statistics Center Q3 2022 as per the latest available data, some GDP growth percentages were revised due to
a new national account series issued by the Dubai Statistics Center. Dubai Economy & Tourism, Dubai Media Office – October 2022

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H1 2023 Investor Presentation

Dubai growth driven by a well diversified economy and strong trade activity
Tourism & Hospitality Dubai Average Occupancy (%) out of Total Available Rooms

• Dubai received 14.36 million international visitors in 2022, 30% of which visited in
75% 67% 73%%
Q4. 2022 recorded nearly twice the total number of visitors who arrived in 2022.

• Hotel demand skyrocketed towards the end of the year in Dubai and Abu Dhabi on
the back of multiple events in the region including Formula 1 event in the UAE’s
146k
capital and the FIFA World Cup in Qatar. 137k
126k
• Hotel occupancy also exceeded 2019 levels reaching 84.4% in Feb’23 (cumulative)
compared to 84.2% in Feb’19 despite the 26% increase in room inventory.
Dec-19 Dec-21 Dec-22

Real Estate Average Dubai Residential Unit Sale Prices (AED millions)

• Dubai remains one of the world's most attractive investment destinations, due to the
1.35
UAE’s stable economy, strong financial fundamentals and ability to find growth 1.30
1.25
opportunities 1.20
1.15
• Activity in the Dubai property market in Q4 2022 reached historic highs, as the value 1.10
1.05
of transactions reached AED 214bn, up 169% Q-o-Q, while the number of 1.00
transactions increased by 52% Q-o-Q to 36,016. 0.95
0.90

Q1 2020

Q2 2020

Q3 2020

Q4 2020

Q1 2021

Q2 2021

Q3 2021

Q4 2021

Q1 2022

Q2 2022

Q3 2022

Q4 2022
• Residential property sale prices in Dubai increased on average by 18.3% Y-o-Y in Q4
2022, while rents increased by 4.7% over the same period. The implied rental yield
stood at an average of 3.2% in Q4 2022.

Source: DLD, UAE Central Bank Quarterly Economic Review, Arqaam 6 dfm.ae
H1 2023 Investor Presentation

Sector representation of Dubai’s GDP vs DFM

DFM IPOs pipeline aims to reflect Dubai’s GDP Mix DFM Sector Breakdown by Market Cap – Q3 2022

Services, 1.8%
• Unlike the economy, the DFM market is dominated by the Financial, Real Estate and Industrials, 1.3%
Consumer Staples,
Construction sector, and the utilities sector. The first two sectors collectively 1.8%
represent 25.9% of the economy vs. 57.1% of the market capitalisation, by end of Q3 Telecommunication, 4.7%
2022 Transportation, Financial, 42.8%
11.7%
• This represents significant opportunities for DFM as there is a diversified pool of
sectors and companies to be listed in the future, and a significant opportunity for
Real estate &
issuers since investors are looking for diversified sectors to invest in. Construction,
14.3%

Utilities, 21.7%

Diversification Opportunity Dubai Real GDP Mix – Q3 2022

• DFM offers an appealing pool of stocks backed by net dividend yields, offering Others, 19.1%

exposure to the growing economy, with a target population of 5.8m by 2040 (CAGR of Trade,
Oil & Mining, 1.5%
3%); state-controlled companies hand out high payouts, while private companies
offer deep value and superior untaxed dividend yields, despite more moderate Hotels &
Restaurants, 8.4% Real Estate &
payouts.
Construction,
15.2%
Manufacturing,
9.3%
Transportation,
11.7%
Financial Sector,
Source: Dubai Statistics Center Preliminary Estimates Q3 2022 as the latest available data. 10.7%
Figures may not add up to 100% due to rounding

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H1 2023 Investor Presentation

H1 2023 DFM key highlights

Performance 652bn AED +14 % 46bn AED

Total market capitalization Increase in DFMGI Total traded value

25,699 1mn+ 57%

New Investors Total DFM investor base Institutional investors
trading share
Investors
74% 20% 48%
Of new investors are foreign Foreign ownership of Foreign investors trading
market cap share

Listings 66 157 136bn AED

Number of listed companies Listed bonds & Sukuk, Total funds raised
(DFM and Nasdaq Dubai) valued USD 116 billion (since inception)
(DFM and Nasdaq Dubai)

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H1 2023 Investor Presentation

DFM at a glance
Market Structure

• In 2007, became the 1st regional exchange to be publicly listed. 2 Exchanges 1 Capital Market Combined Liquidity Pool

• Established in 2000 as a government owned exchange and the first

Shari’a-compliant exchange globally providing primary and secondary
market services to investors and issuers.
80.66% 33.3%

• Integrated operations: 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,
66.7%
regionally, and globally.

CSD | CCP

• Two Regulators: Securities and Commodities Authority regulates DFM

Regulated by Regulated by
and Dubai Financial Services Authority regulates Nasdaq Dubai.

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H1 2023 Investor Presentation

Our strategic priorities

Listings Enhance market accessibility

& product diversification

• Leveraging the exchanges flexible and • Increase the number of members

diversified listing options. providing fintech solutions, General
Clearing Members and Market Makers as
• Diversified product offering that includes
well as Direct Market Access (DMA).
Equities, Fixed income instruments,
derivatives and ETFs. • Attract new investors with focus on the
youth via digital channels.

Advance operational efficiency Nurture talent & performance

• Automation of core post- trade processes. • Aligning performance development

• Same day execution of 80% of non- framework to corporate performance

exchange related internal processes. targets.

• Maintain a robust regulatory and • Develop and empower future capital

compliance framework for DFM and its markets specialists through our Future

subsidiaries. Leaders Program.

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H1 2023 Investor Presentation

The destination to tap into Dubai’s Capital Market

Listing Options Asset Classes

Any type of company. From anywhere in the world. We offer a myriad of solutions to list and raise capital. Based in a Access to a secure, liquid and transparent market. with access to a pool of over
global capital market hub, Dubai is a destination for entrepreneurs at the forefront of technology and innovation 1 million individual and institutional investors from around the world.

• Equities • REITs
• Sukuk & Bonds • ETFs
Established Company Family Business
• Derivatives • Funds
For enterprises looking to accelerate growth, Privately held local businesses looking to secure
diversify wealth or access capital generational transitions and access capital

Dual Listing Post-Trade Services

Free zone Company
Companies listed on another market looking Wide range of value-added services. Our continuous focus on
Ambitious companies based in UAE free zones expand investor reach and enhance profile
enhancing infrastructure enables a streamlined and efficient process
to access the market.

• CCP • Dividend Distribution

SMEs Private Company • Depository • iVestor
Small & medium businesses with minimum Enterprises looking to expand their business • SLB • AGM Management
financial record of 1 year and raise their profile without an IPO
• Regulated Short-selling • IPO Platform

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H1 2023 Investor Presentation

Attracting investors through index representation

Index Inclusion

All major index providers cover stocks listed on DFM in their relevant local,
regional and international indices. Inclusion into additional indices can provide a
number of benefits for issuers:
• MSCI UAE • FTSE Nasdaq Dubai • S&P UAE Price
• Exposure to new type of investment; passive as well as active prominent • MSCI GCC Countries • FTSE Emerging • S&P UAE Domestic Shari’a
international funds. • MSCI Emerging Market • FTSE Global Equity • S&P Emerging Middle East
Shari’a & Africa
• Enhancing visibility to international investors.

• Enhanced valuations.

• Optimal shareholders mix and diversified investor base.

• Dow Jones GCC • DFM General Index

• Dow Jones MENA • DFM Shari’a
• Dow Jones Sustainability

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H1 2023 Investor Presentation

Paving the path to ESG practices and their role in the capital markets
COP 28 SDGs Global 2022 Ranking

The 2023 UN Climate Change Conference will convene from 30 November to 12 Jordan 80
December 2023 in Dubai, at Expo City. The first Global Stock take of the implementation
Oman 81
of the Paris Agreement will conclude at COP 28. Each stock take is a two-year process
UAE 85
that happens every five years, with the aim of assessing the world’s collective progress
towards achieving its climate goals. The UAE has made significant progress on climate
Qatar 94

initiatives and plans to prioritize low-carbon investments with greater consideration of KSA 96
emission reduction. Kuwait 101
Bahrain 102

Key Agenda Highlights

• AED 100 billion green fund to make Dubai an environment-friendly city with the least • In 2022, 98% of DFM-listed companies have developed sustainability reports for the
carbon footprint in the world by 2050. financial reporting year 2021, complying with SCA”s mandate for ESG disclosure.

• Mohammed bin Rashid Al Maktoum Solar Park is expected to be the largest single- • Developed our second ESG guide to support ESG reporting journey of DFM-listed
site solar park in the world by 2050. companies.

• The Dubai and Sharjah ‘Sustainable Cities’ are the first fully operational sustainable • FTSE4Good Constituent: FTSE Russell’s December 2022 review confirms that DFM
communities in the Middle East. remains a constituent.

• UAE leads in ESG reporting to drive market transparency and meet growing investor • DFM is a member of the United Nations Sustainable Stock Exchanges Initiative.
demands.

Source: Sustainable Development Report 2022 13 dfm.ae

H1 2023 Investor Presentation

Record IPO activity & growing pipeline

2022 Key Highlights H1 2023 Listings

Al Ansari Financial Services completed its

AED 31 billion AED 670 billion 18x – 49x IPO successfully in March 2023 and listed
Capital Raised Demand Received Oversubscription Range on 6 April 2023.

Capital Raised Since Inception in Dubai

7.6

0.01
2.1

38.8
0.5 21.6 32
3.1
13.1 10.8
5.4

2000 - 2004 2005 - 2009 2010 - 2014 2015 - 2019 2020 - 2023

IPOs Capital Raise Convertible Bonds

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H1 2023 Investor Presentation

Bringing together regional & international investors

H1 2023 Key Highlights Institutional Investors’ Trading Share (%) Institutional Ownership (% of Market Cap)

+ 25,699 74% 1+ million 57%

87%
70%
New investors New investors are foreign Total investor base
24%

Trading Value Breakdown by Nationality Q1 2023 (%) 2013 H1 2023 2013 H1 2023

7%
Foreign Investors’ Trading Share (%) Foreign Ownership (% of Market Cap)

44% UAE
International* 48% 20%
16%
GCC
50%
43%

2013 H1 2023 2013 H1 2023

Note: Figures exclude Nasdaq Dubai 15 dfm.ae

*Includes Arabs and non-Arabs
H1 2023 Investor Presentation

H1 2023 DFM market summary

Market Capitalization (AED bn) Market Total Traded Value (AED bn)
90
652
582 72
66
60
411 53
375 46
344 340

2018 2019 2020 2021 2022 H1 2023 2018 2019 2020 2021 2022 H1 2023

Market ADTV (AED mn) Market Velocity (%)

375
357

291
261 41%
238 38%
213 36% 35% 39%

19%
17% 18%
14%
15%

2018 2019 2020 2021 2022 H1 2023 2018 2019 2020 2021 2022
Global Average Velocity

Note: Figures exclude Nasdaq Dubai. Source for global velocity figures: World Federation of Exchanges 16 dfm.ae
H1 2023 Investor Presentation

DFM’s sustainability strategy pillars

01 02 03
Governance Excellence Sustainable Capital Market Positive Social & Environmental Impact

• Corporate governance • ESG disclosure • Talent attraction, development, and retention

• Stakeholder engagement • Attract new listings • Diversity and inclusion

• Business ethics • ESG products • Environmental practices

• Risk management • Promote ESG among listed companies • Financial literacy and local community development

• Technological risks and cyber threats • Employee health and wellbeing

• Data privacy and information security • Employee engagement and satisfaction

• Executive compensation and incentives • Climate risk management

• Anti-corruption, anti-bribery, anti-money • Sustainable supply chain

laundering

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H1 2023 Investor Presentation

Sustainable capital market

S&P/Hawkamah UAE ESG Index
ESG Index
1,800
• The S&P/Hawkamah UAE ESG Index launched in 2020. Comprised of 20 listed
companies on the UAE exchanges and subject to annual assessment incorporating
ESG criteria against which the company’s disclosure practices are evaluated by
1,300
Hawkamah, the S&P’s screening partner in the Middle East.

• Inclusion of ESG indices increases the profile of a company for stakeholders and
investors and provides public recognition for a company on its ESG practices. As the
800
responsible investment movement continues to grow, one should only expect to see 01/01/2021 01/02/2022 01/03/2023
more sustainability-focused capital allocated to companies with better ESG
disclosure.

Value of ESG Bonds & Sukuk on Nasdaq Dubai (in USD billion)
Green & ESG Driven Products
19.04

• As the market moves towards greater adoption of ESG convergence, Nasdaq Dubai
continues to be the preferred destination for green, sustainable and ESG bonds and + 57%
12.15
Sukuk from the region and across the globe, with a total market value exceeding
US$19 billion in 2022, a 57% increase year on year.
7.75

2020 2021 2022

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H1 2023 Investor Presentation

DFM PJSC shareholding & dividends

Dividend Policy Dividends Payout History (AED millions)
*RE stands for Retained Earnings.
1 Calculated as dividend (paid following year) divided by the net profit of the year.
• DFM PJSC adopted a new fixed dividend policy, stipulating that 242% 300%
600

250%
500
153% 171% 164%
the Company annually distributes a minimum of 50% of its 142% 200%

94% 150%
400
74%
distributable net profit as opposed to the current practice of
100%
119 138
300 167 50%
560
0%
cash dividend every two years. 200

141 -50%

281 78 2
100
262 233 -100%

122 99 133 -150%

- -200%

2013 2014 2015 2017 2019 2021 2022

Net Profit Portion RE Portion* Payout Ratio % ¹

Shareholders (As of 30 June 2023) Dividends Per Share (AED)

0.07

By Nationality 0.05 0.05 0.05

• 93.76% UAE
• 5.08% International 0.03
• 1.15% GCC 0.025
0.0168
By Ownership
• 19.34% Public Stake
• 80.66% Borse Dubai
2013 2014 2015 2017 2019 2021 2022

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H1 2023 Investor Presentation

DFM PJSC stock trading activity

DFM PJSC Trading Activity
DFM PJSC Closing Price Against DFMGI
32.4

1.70 DFM DFMGI 4,000 26

Average Daily Traded Volume
1.5 (mn)
1.51
3,500 Average Daily Traded Value 18.5
1.30
(AED mn)
3,000 12.1 13
9
0.90 0.97 6.3
0.93 0.84 2,500 5
0.8 3.6 3.6 4.4 3.8

0.50 2,000
2018 2019 2020 2021 2022 H1 2023 2018 2019 2020 2021 2022 H1 2023

Major Equity Markets Index Performance YTD 30 June 2023

35% 31.7%
30%
25% 20.0%
20% 16.0% 15.9% 14.3% 13.7%
15% 9.4% 8.7%
10% 6.4% 6.0%
3.8%
5% 1.1% 0.2%
0%
-5%
-10% -6.5%
Nasdaq Russell 2000 DAX S&P500 CAC 40 DFMGI TASI STOXX Europe BSE SENSEX Nifty 50 DJIA FTSE 100 STI ADX
Composite 600 (Singapore)

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H1 2023 Investor Presentation

Q2 2023 Key Performance Highlights

• 84% upsurge in H1 2023 net profit to AED

112.2 million.

• Revenue increased by 32% year-on-year to AED

218.1 million in the first half of 2023, from AED
165.4 million last year.

• Total expenses reached AED 105.9 million

compared to AED 104.3 million during the
same period of H1 2022 with slightly
increased by 1.5%.

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Financial Highlights
Total Revenue (AED mn) EBITDA (AED mn) and EBITDA Margin (%)

351.8 354.6 64% 61% 63% 62% 69%

298.1 225.7 223.2

181.7
218.1
150.6
165.4
101.8

FY 2020 FY 2021 FY 2022 H1 2022 H1 2023 FY 2020 FY 2021 FY 2022 H1 2022 H1 2023

Total Revenue Mix (%) Net Profit (AED mn) and Net Profit Margin (%)
40% 33% 41% 37% 51%

142.6 143.9

22% 17% 16% 17% 19% 112.2

99.1
27% 27% 26%
33% 40%
61.1

56% 57% 57%

45% 41%

FY 2020 FY 2021 FY 2022 H1 2022 H1 2023 FY 2020 FY 2021 FY 2022 H1 2022 H1 2023

Trading fees Investment income Others fees and income

*Investment income includes profit earned on third party deposits.

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Financial Highlights
Operating Expense Breakdown (%)

(AED mn) 198.9 207.1 105.7

1% 1%
6% 6% 6%
11% 10%
12%
10% 13% 15%
Interest Expense
Maintenance
28% 27% 27%
Depreciation
General & Administrative Expenses
Amortization of Intangible Assets

42% 42% 43% Payroll & Other Benefits

FY 2021 FY 2022 H1 2023

Some figures & percentages might not totally add up due to rounding. The above exclude 2023 non-operating profit expense. 23 dfm.ae
H1 2023 Investor Presentation

Financial Highlights
Selected Balance sheet items (AED mn) Main Financial Assets (AED mn) Main Financial Assets Breakdown (%)
Managed Funds,
2%
H1 2023 Investment in
FY 2022 H1 2023
Equity Securities,
14%
Cash and Cash Equivalents 244
Investment Deposits 2,517 3,017

Investment Deposits 3,017 Cash and Cash

Financial Assets Equivalents, 5%
Measured at FVOCI & 1,243 1,241
amortized cost Less than 3 Months 665
Up to 1 Year but More Investment
2,176 Investment in Deposits, 67%
Goodwill 2,879 2,879 than 3 Months Sukuk, 12%
More than 1 Year 176
Other Intangible Assets 1,921 1,892
Other Financial Assets
Measured at Fair Value – 1,241
Property and Equipment 320 325 (FVTOCI) & amortized cost
Investment in Equity
610
Securities
Total Assets 9,494 9,823
Managed Funds 104 Commentary

Total Equity 7,948 7,934 Investment in Sukuk 527 • Investment deposits are placed with financial institutions in the UAE,
with profit rates ranging from 3.70% to 5.65% per annum.
1,546 1,889 Total 4,502 • Investment in Sukuk in the UAE matures in 4-9 years and carries an
Total Liabilities
average fixed profit rate of 4% per annum.
• 98% of the investments made by DFM are within the UAE.

*Investment income includes profit earned on third party deposits.

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Consolidated P&L
For the six months ended
(AED’000) 30 Jun 2022 30 Jun 2023
Income
Trading commission fees 94,404 89,983
Brokerage fees 6,828 6,202
Clearing settlement and depositary fees 13,136 20,515
Listing and market data fees 4,884 5,905
Other fees 3,494 7,596
Operating income 122,746 130,201

Investment income 30,907 70,791

Dividend income 9,492 17,012
Other income (136) (113)
Profit income 2,402 226
Total investment and other income 42,665 87,916
Total income 165,411 218,117

Expenses
General and administrative expenses (72,389) (77,424)
Amortisation of intangible assets (28,244) (28,244)
Interest expense (1,289) (37)
Operating expenses (101,922) (105,705)

Profit expense (2,402) (226)

Total expenses (104,324) (105,931)
Net profit for the period 61,087 112,186
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Email: ir@dfm.ae

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