The market grew faster than its income statement suggests
Dubai Financial Market reported AED162 billion of traded value in the first nine months of 2026, an increase of 22% from AED133 billion a year earlier. Average daily traded value rose 25% to AED883 million. Yet pre-tax profit declined to AED586.4 million from AED930.8 million. Taken without context, the combination looks like a trading boom that failed to produce earnings.
The comparison is distorted by a substantial property transaction in the previous year. DFM says 2025 included about AED461.9 million of one-off income from the sale of an investment property. Reported group profit therefore includes a material non-recurring base effect. Removing that item mechanically from revenue is not the same as calculating a fully adjusted profit figure, but it explains why the headline year-on-year decline is a poor measure of the exchange's recurring activity.
Liquidity is becoming more international
DFM recorded approximately 3.16 million trades in the nine-month period, up 24%, and average daily trades increased 26% to around 17,200. It added 55,460 investors, 72% of them international, taking the investor base above 1.3 million. These measures indicate broader participation, not simply higher prices for the same set of securities.
Institutional investors accounted for 73% of traded value, while foreign investors represented 51%. The two categories overlap and should not be added together. More institutional and overseas activity can deepen the order book and make Dubai more useful for issuers seeking a wider pool of capital. It can also increase sensitivity to global portfolio flows when investors retreat from risk.
Operating income gives a cleaner signal
DFM's operating income increased 24.8% to AED511.2 million during the first nine months. Total consolidated revenue was AED753.2 million, including AED242 million from investment returns and other income. The distinction matters: fees associated with exchange operations respond to trading and listings, while investment income can fluctuate with asset values, rates and portfolio decisions.
EBITDA reached AED642 million, with a reported margin of 85.2%. That figure is not equivalent to cash available for distribution, because it excludes depreciation, financing and other items. Expenses excluding tax increased modestly to AED166.8 million from AED162.6 million. The operating trend suggests greater activity with controlled expenses, but the profit and cash-flow statements still require separate examination.
A busy exchange does not mean all shares gained
DFM's general index ended September at 5,960.54, about 1.4% below the start of the year, despite stronger trading activity. This is not inconsistent. Turnover measures the value of transactions, while an index measures the price performance of its constituents. Investors can trade more frequently in a volatile or declining market, and an exchange operator can earn transaction-related revenue even when many shareholders lose money.
The distinction is particularly relevant in the Gulf, where capital-market development is often described through listings and headline valuations. Sustainable depth also requires free float, transparent disclosures, investor protection and a diversified issuer base. New accounts are an encouraging distribution measure, not proof that every investor is active or that every listed company can raise capital on attractive terms.
The next test is whether participation converts into durable listings
DFM's third-quarter revenue of AED196.2 million was below the AED204.5 million reported a year earlier, and quarterly pre-tax profit was AED143.2 million versus AED153.7 million. The nine-month activity figures therefore should not be extrapolated into a claim of uninterrupted quarterly acceleration. Timing and investment-income comparisons matter.
Watch new listings, secondary capital raising, institutional turnover and the recurring share of operating income. Dubai's exchange is showing meaningful progress in participation, but a mature assessment should strip out property-sale gains and separate trading volumes from asset prices. The evidence supports a more active market infrastructure business, not the simpler claim that reported profit and market health always move in the same direction.