Complete guide to the Dubai Financial Market (DFM)

• About
• DFM-Listed Companies
• How to Trade on DFM
• DFM Products
• DFM Services
• Shari’a Exchange
• DFM Dubai App
• DFM Contact

Founded in 2000, the Dubai Financial Market (DFM) is a regional stock exchange market in the region. With over 100 company listings, DFM allows traders and stockbrokers to buy and sell shares of bonds, stock and other financial instruments in Dubai. Today, we bring you a complete guide on DFM that covers the process of trading, services, products, app and everything in between.

ABOUT DUBAI FINANCIAL MARKET (DFM)

Dubai Financial Market (DFM) launched its operations on 26th March 2000 under the Decree 14/2000 issued by the Government of Dubai. On 27th December 2005, it turned into a public shareholding company with AED 8 billion shares by the Executive Council of Dubai and 1.6 billion shares through IPO. As a result, subscriptions increased and the company’s worth increased to AED 201 billion.

On 7th March 2007, Dubai Financial Market (DFM) was officially listed on the market and in 2010, it partnered with Nasdaq Dubai to consolidate its activities in the regional financial markets. As a part of this consolidation, investors got an opportunity to trade seamlessly and separately across DFM and Nasdaq Dubai.

KEY FACTS ABOUT DFM

• Dubai Financial Market is regulated by the Securities and Commodities Authority (SCA), whereas Nasdaq Dubai is managed by the Dubai Financial Services Authority (DFSA).
• DFM has now evolved into a leading financial market across the UAE. It also runs Shari’a compliant exchange, enabling trade as per Islamic principles.
• It allows you to trade bonds, funds, shares, securities and Islamic Sukuk (Shari’a bonds/Islamic financial certificates).

MAJOR DUBAI FINANCIAL MARKET COMPANIES LIST

Here is a list of some of the key players in the market who have listed their shares on DFM.

BROKERS

• ADCB Securities LLC
• ADIB Securities
• Al Ansari Financial Services
• Al Brooge Securities
• Al Dar Shares and Bonds
• Al Daman Securities
• Al Ramz Capital L.L.C

FUND ISSUERS

• AL Mal UAE Equity Fund
• The Bitcoin Fund

BOND ISSUERS

• Government of Dubai

SUKUK ISSUERS

• Dubai DOF Sukuk

BANKS

• Commercial Bank of Dubai PSC
• Emirates NBD PJSC
• Emirates Investment Bank PJSC
• Dubai Islamic Bank

OTHER DUBAI FINANCIAL MARKET LISTED COMPANIES

• Aan Digital Services Holding Co.
• Agility The Public Warehousing Company (K.S.C.)
• Air Arabia PJSC
• Al Mazaya Holding Company
• Al Firdous Holdings PJSC
• Al Ramz Corporation Investment and Development PJSC
• Al Salam Bank
• Dar Al Takaful
• Ajman Bank PJSC
• Drake & Scull International P.J.S.C
• Dubai Electricity & Water Authority PJSC
• Emaar Properties PJSC
• Union Coop

Each of these listed securities including banks in Dubai sells shares to the public as per the guidelines of the Dubai Financial Market.

HOW TO TRADE ON DFM DUBAI

Dubai Financial Market (DFM) and the region’s global financial exchange Nasdaq Dubai allows investors from all countries to trade listed securities. The interested individuals should follow the process outlined below.

SIGN UP FOR AN INVESTOR NUMBER (NIN)

• Through DFM App.
• By visiting the Investor Affairs at Dubai CSD in World Trade Centre.
• By asking a DFM licensed broker to obtain NIN on your behalf.

APPOINT A BROKER

Once you have obtained a NIN from Dubai CSD, ask a licenced brokerage to open a trading account and complete all the formalities. A broker will initiate buying/selling transactions based on your instructions. You can check out the list of licenced brokers on the DFM’s website.

START TRADING

Now that your basics are sorted, you can begin trading online or via phone as per the options given by your broker. Monitor the trends and check the trading data of Nasdaq Dubai and DFM listed securities – equities, derivatives, bonds and Sukuk and exchange-traded funds (ETFs) – in real-time on DFM’s official website.

KEEP A TRACK OF YOUR PORTFOLIO

View all your trading activities on the app or DFM eServices section.

DUBAI FINANCIAL MARKET PRODUCTS

EQUITY FUTURES

Equity Futures is a part of DFM’s strategy to diversify financial instruments and attract more investments. It is a platform that allows you to trade derivatives in individual stock active companies listed on the market. The platform is based on certain regulatory rules made with regard to the best international practices.

BENEFITS OF EQUITY FUTURES

Equity Futures allows investors to:

• Diversify their portfolios.
• Offset losses in investments.
• Take advantage of leveraged facilities that allow one to pay only 10% to 30% of the value of the contract up front.
• Enjoy exposure to stock prices.
• Take strategic financial decisions (sell trades when price drops and buy back when it hikes).

HOW TO TRADE EQUITY FUTURES

• Set up an account with a licenced derivatives broker (check the list on the DFM website).
• Place an order through a broker to buy or sell an Equity Futures contract.
• Wait for the trade to be added on the Matching Engine and executed only if a matching price is available. (Trade value calculation: No. of contract * Contract size * price)
• Deposit the minimum amount required to buy shares (for this, you must have a brokerage account where your broker/deal can lend you cash to be later used for trading).
• Wait for the trade to be registered with Dubai Clear for transparency purposes.

Please note:

• Any profit/loss that resulted from a price change in the market is settled daily based on the current value of a share (officially known as Variation Margin).
• Once the position of your trade is adjusted, Initial Margins related to this are released.
• Upon expiration of the contract, it is closed and settled by Dubai Clear, which pays the final settlement price.

EQUITY FUTURES COMPANIES

Here are some of the companies that allow you to invest in shares for different terms, ranging from one to three months:

• Emaar Properties PJSC
• Dubai Islamic Bank
• Emirates NBD PJSC
• Emaar Development PJSC
• ARAMEX PJSC
• Air Arabia PJSC AIRARB
• Emirates Integrated Telecommunications Company PJSC
• Dubai Investments PJSC
• Dubai Financial Market
• Shuaa Capital PSC
• DEWA PJSC
• GFH BSC GFH
• Deyaar Development PJSC

REAL ESTATE INVESTMENT TRUSTS (REITS)

As the name indicates, these are the type of funds that are invested in real estate. The DFM REITs platform allows investors to diversify their rental income streams and make issuers enjoy capital on their properties without selling the stake of a holding company.

HOW TO TRADE REITS?

REITs are traded similar to other securities: by placing the buying or selling orders through a broker.

EXCHANGE TRADED FUNDS (ETFS)

Exchange Traded Funds are a kind of public security which is traded on the stock exchange. It comprises the features of a share and an index fund – diverse as a fund but works as a stock. It exposes investors to a broader range of investment opportunities in a cost-effective and risk-free manner. ETFs can be bought or sold anytime.

HOW TO TRADE ETFs?

ETFs are traded like shares. To trade ETFs, you must be listed on DFM.

Please note that there is no limit on buying the number of funds.

iVESTOR CARD

iVESTOR Card is a one-stop solution to receive due dividends fast and easily. It is a pre-paid debit credit which can be credited with funds like cash top ups and dividends.

Apart from getting dividends, you can instantly withdraw cash from ATMs (VISA/PLUS-marked/Emirates NBD) and make purchases from all global retail chains accepting VISA through this card.

HOW TO MANAGE iVESTOR VIA THE DFM APP

Using the DFM App, you can:

• Activate/de-activate your card.
• Set your PIN on demand.
• Recharge your card through the TOP UP option.
• Enable/disable ATM cash withdrawals and Point of Sale (POS).
• Make online purchases.
• Limit cash withdrawals for all transactions (UAE and overseas).
• Keep a track of your spending and transactions.
• Manage your minor(s) card(s).

COST OF AN IVESTOR CARD

iVESTOR card is free.

HOW TO APPLY FOR AN IVESTOR CARD

INDIVIDUAL INVESTORS

You can apply through Cash Dividends Services Form via DFM Broker or by visiting the Dubai CSD, Trading Floor, Dubai World Trade Centre. Another option is to apply via: https://bit.ly/3hSCFjg.

NEW INVESTORS

To apply as a new investor, you must fill out the Investor Request Form available on the DFM website.

DFM ISSUERS

If you want to apply through this method, seek assistance from DFM’s Financial Services Division at financialservices@dfm.ae.

DME MICRO OMAN CRUDE OIL FUTURES

Dubai Financial Market (DFM) introduced this product in partnership with Dubai Mercantile Exchange (DME) in 2007. This is a global energy-centric commodities contract made between Dubai Holding, CME Group and Oman Investment Authority to create a standard price point for crude oil exports in the East of Suez.

It’s been over fifteen years since this contract was first made. To date, all the Middle Eastern countries including UAE, Kuwait, Oman, Bahrain and Saudi Arabia set a price for their crude oil exports based on this deal. The contract is priced at 5.2 million barrels per day.

WHO HAS EQUITY STAKES IN DME?

All the major energy trading firms such as JP Morgan, Goldman Sachs, Concord Energy, Vitol, Shell and Morgan Shanley have shares in this DME.

DUBAI FINANCIAL MARKET KEY SERVICES

Dubai Financial Market offers an array of services for members (brokers, custodians, market makers), investors and issuers.

DFM SERVICES FOR MEMBERS

DFM BROKERS

Brokers can apply for:

• Company Registration Services
• Trading/Clearing System Access Request
• WAN Services
• Product Licencing
• Transfer of Securities
• Reports and Letters
• Delegate Card Issuance
• Trade Correction
• Call Voice Recording Service
• Closing Investors Account
• Brokerage Company Advertisement
• Changing Investor’s Account Type
• Sharing Register for Private Companies
• Transfer of Margin Financing Businesses between Clearing Members
• Setting the Daily Operational Limit

CUSTODIANS

Custodians can apply for:

• Custody Investor Number (IN) Opening
• Murabaha Transactions
• REPO Transactions
• SLB Transfers and registration
• Transfer of Securities from an individual investor/different accounts
• Client Name Amendment
• Pledge Securities
• Investor Number Closure
• Electronic Reports
• Trade Rejections

MARKET MAKER

Market Maker can apply for Market Maker Licensing at DFM.

DFM SERVICES FOR INVESTORS

Investors can initiate a request for:

• IPO Digital Platform Subscriptions
• Issuing Investor Number NIN (Individual/Heir’s Account| Company | Fund| Trading member | Bank registered at DFM
• Investor Signature Authentication at Dubai CSD Company
• Updating Investor Information Form
• iVESTOR Card issuance or replacement
• Transfer of securities
• Securities deposit and withdrawal
• Divident payments
• Letter requests
• Statements and reports
• eStock Portfolio Services (IVR)
• Freeze shares (based on Investor Request)
• Copy of investor’s documents
• Issue replacement cheques

DFM SERVICES FOR ISSUERS

In the same vein, issuers can apply for:

• IPO, listing and renewal services for public/private joint stock, companies, funds, stocks or bonds
• Technology licences for specific systems
• Disclosure services
• Dividend distributions
• Reports and statements services
• Email or SMS campaigns
• Change of company name or trading symbol (or both)
• Conversion services
• Securities withdrawal of listed companies
• Registration of ownership movements
• Block trade
• Transfer of securities

Please note that we have mentioned an overview of services. To apply for a particular service, you can visit DFM’s website.

DFM SHARI’A

Dubai Financial Market (DFM) is the first global market operating as per the provisions of Shari’a since 2007. The market allows individuals from all over the world to make an investment in Shari’a-compliant companies according to the regulations of Islamic Law.

The first DFM Shari’a index was launched in 2019 under the tutelage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. Now it’s fully up and running with many companies listed on DFM complying with Shari’a law.

DFM Shari’a also allows you to calculate Zakat value on your shares. You can visit DFM’s website to check Shari’a index.

SHARIA KEY STANDARDS AND PARAMETERS

To ensure the seamless transactional experience on the listed Shari’a securities, the DFM Fatwa and Shari’a Supervisory Board has set a few standards and parameters, which primarily apply upon:

• Acquisition of shares
• Trading of shares
• Issuance and subscription of shares
• Managing unlawful trade transactions
• The rules for issuance of Sukuk
• Hedging against economic risks

As far as the financing is concerned, DFM and the General Authority for Islamic Affairs and Endowments have signed a Memorandum of Understanding (MoU), based on which investors can fund their shares at DFM for:

• Endowment for Islamic Affairs
• Endowment for Healthcare
• Endowment for Social Welfare
• Endowment for Education
• Endowment for Righteousness and Piety
• Endowment for Orphans and Poor People
• Endowment for the Donor’s Family and Offspring

DUBAI FINANCIAL MARKET (DFM) APP

DFM app offers access to real-time prices, cash dividend history, indices and market statistics. The app works on both iOS and Android.

DUBAI FINANCIAL MARKET CONTACT

• Dubai Financial Market Location: Mezzanine Floor, World Trade Centre (Rashid Tower), Sheikh Zayed Road
• Timings: Mon-Fri: 08:00 am – 04:00 pm
• DFM Contact Number: +971-4-305-5555

FAQs ABOUT DFM DUBAI

HOW CAN I INVEST IN DUBAI FINANCIAL MARKET (DFM)?

• Register to DFM eServices through DFM website or an app.
• Login to the website (DFM login requires username and password).
• Select the eFORMS tab to fill the form.
• Upload the required documents.
• Click on ‘Submit’.
• The investor will get the Investor Number through an SMS.

HOW TO BUY SHARES IN DUBAI FINANCIAL MARKET (DFM)?

• Apply for registration of Investor Number (NIN) based on the method detailed above.
• Find a broker registered at Dubai Financial Market (DFM).
• Go with any of the options suggested by your broker to start trading shares.
• Keep a track of your transactions.

WHAT IS THE DUBAI FINANCIAL MARKET INDEX?

DFM index offers an insight into the performance of the listed companies. To check Dubai Financial Market indices:

• Go to Dubai Financial Market’s website
• Select the ‘Market Data’ tab
• Scroll down to ‘Indices’
• Click to view the latest index

That brings an end to our comprehensive guide on the Dubai Financial Market. The market is committed to offering market participants and investors innovative services and products to enable quick, seamless and smooth trading. If you plan to step into the hub of trading, check our in-depth guide on how to trade stocks in Dubai to mitigate any risks.