As of 2014[update], there are 67 companies listed on DFM. Most of them are UAE-based companies and a few others are dual listings for companies based in other MENA region countries. Foreign companies are from the following countries: Kuwait, Bahrain, Oman, and Sudan. Many companies allow foreigners to own their shares.
During 2004 and 2005, there were significant increases in the volume of shares traded and the share prices of many companies. However, towards the end of 2005 and through the first few months of 2006 the bubble burst and share values dropped by around 60% on DFM, along with similar decreases in most other Persian Gulf stock markets.
DFM and ADX are both governed and regulated by the Securities and Commodities Authority (SCA). SCA has the authority to impose laws and standards in which DFM and ADX have to comply with. SCA’s role is to ensure that the laws are followed by the exchanges as well as to protect investors’, brokers’ and listed companies’ rights.
On the other hand, NASDAQ Dubai is governed to international standards by an independent regulator called the Dubai Financial Services Authority (DFSA), which is equivalent to the Securities and Exchange Commission in the U.S. Unlike DFM and ADX, NASDAQ Dubai, located in Dubai International Financial Centre (DIFC), is an electronic exchange with no trading floor.
DFM was a fully owned by Dubai government until November 2006 when it turned into a public joint-stock company through an IPO, which led to sell 20% of its shares to public and 80% were subscribed by Borse Dubai, which is owned by Dubai government. As a matter of fact, DFM’s IPO has been oversubscribed by 118 times.
Like the revenue, DFM net profit dropped sharply from the period ended 2007 till 2011. In 2007, DFM profits reached 1,439.6 million including none operational profits coming from IPO of AED 468 million. In 2008, profits are only 605 AED million. The next year, in 2009, the profit dropped even further and reached 346.62. In 2010, another drop took place and profits reached AED 79 million. Unfortunately, in 2011, DFM recorded a loss of AED 6.45 million. From the trend, we can imply that the situation is not improving, but is deteriorating year after year. DFM BOD members, executives, and managers are working hard to get out DFM from this unforeseen dilemma.
Please note that Emirates Bank International (EBI) and National Bank of Dubai (NBD) had been merged to form a holding company to run both entities named Emirates National Bank of Dubai (ENBD), this merger resulted in cancelling both shares and issuing a new one listed on the October 16, 2007.
Both AMLAK and TAMWEEL were suspended from trading since the November 23, 2008 as they announced a merger action.