Strong start to 2026 for Dubai Financial Market as profits, liquidity and global investor inflows surge
Foreign and institutional investors drive majority of market turnover in Q1
DUBAI – Dubai Financial Market (DFM) has opened 2026 with a robust performance, reporting strong growth across trading activity, investor participation, and financial results for the first quarter ended 31 March 2026.
The exchange recorded a notable increase in liquidity, with average daily trading value surpassing the Dh 1 billion mark for the first time in the period under review.
The latest figures reflect sustained momentum in Dubai’s capital markets, supported by rising international inflows and deeper institutional engagement. The performance highlights continued investor confidence in DFM as a leading regional platform for capital formation and trading activity.
Trading momentum
DFM witnessed a significant rise in trading activity during Q1 2026, driven by strong participation across equities and broader market instruments. Average Daily Trading Value (ADTV) surged 56% year-on-year to Dh 1.03 billion, compared to Dh 663 million in the same period of 2025.
Total traded value increased 48% year-on-year to Dh 61 billion, up from Dh 41.12 billion a year earlier. This growth reflects stronger market depth and sustained liquidity across sessions, with consistent engagement from both domestic and international investors.
Market capitalisation stood at Dh 897 billion at the end of March 2026, indicating continued scale and stability in the overall valuation of listed companies despite fluctuations in index performance during the quarter.
Investor activity
Investor participation expanded further during the quarter, with DFM attracting 20,702 new investors compared to 19,366 in Q1 2025. International investors accounted for 79% of new registrations, reinforcing the exchange’s growing global appeal.
Foreign investors contributed 54% of total trading value, highlighting their central role in market liquidity. Institutional investors dominated overall turnover, accounting for 70% of total trading activity, underscoring the depth of professional participation in the market.
This evolving investor mix reflects a more globally integrated trading environment, where cross-border capital and institutional flows continue to shape market dynamics and enhance liquidity levels.
Financial growth
DFM reported consolidated revenue of Dh 253.1 million in Q1 2026, representing a 36% increase compared to Dh 186.5 million in the same quarter of the previous year. The growth was primarily supported by higher trading volumes and improved market activity.
Operating income reached Dh 171.9 million, while investment returns and other income contributed Dh 81.2 million. The diversified revenue base reflects both core exchange operations and additional income streams linked to market performance.
Net profit before tax rose 43% year-on-year to Dh 193.3 million, compared to Dh 134.9 million in Q1 2025. Total expenses excluding tax increased to Dh 59.8 million from Dh 51.6 million, reflecting moderate cost adjustments aligned with higher activity levels.
Market movement
Market performance showed strong early-quarter momentum, with the DFM General Index reaching 6,774 points on 9 February 2026. However, sentiment softened towards the end of the quarter, resulting in a 10.1% decline by March close.
Despite the index movement, trading activity remained resilient, supported by steady investor participation across segments. Liquidity levels held firm throughout the period, reflecting underlying confidence in market infrastructure and operational stability.