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Home > Investors > FAQs

Frequently asked questions


Investor Number Services

Opening an Investor Number (NIN) is a free of charge service.
Your presence is not required if your signature on the form is authenticated by an accredited bank, a listed company or a brokerage firm licensed on the DFM. Alternatively, a representative holding a duly authenticated Power of Attorney, can submit your form and must present your original passport (signed).
Opening an Investor Number (NIN) is a fast-track service provided to investors. If you apply for the Investor Number in person at the DFM premises, the Investor Number (NIN) can be issued immediately once the request is submitted.
Yes. The Dubai Financial Market (DFM) is open to investors of any nationality based in any country. Any individual or institution can apply for an Investor Number (NIN) with the Dubai Financial Market CSD in order to trade both DFM and NASDAQ Dubai listed securities.
Trading requires opening an account with a brokerage firm licensed on the DFM. After obtaining an Investor Number, you should approach one of the brokerage firms to open a trading account.

For more information download the How to Trade on DFM and NASDAQ Dubai Guide.
Yes. Investors below the age of 21 are considered minors, and therefore the guardian must sign the Investor Number (NIN) Request Form on behalf of the minor.
You can apply by providing a duly authenticated Power of Attorney.

Transfers

Transferring shares between accounts of two different investors are permitted only if there is a 2nd degree kinship between the transferor and transferee.

Special Deals off the market are also permitted provided the value of shares of the deal is AED10,000,000 million and above.

In order to process the transfer off the market, the shares must be available in your CSD account.

Shares cannot be transferred if they are frozen. Frozen shares need to be un-frozen first; this process requires submission of an original certificate or copy of Allotment Notice to the DFM. 

The requirements of securities withdrawal from the Dubai Financial Market (DFM) are as follows:

An official letter or a depositing and withdrawing form should be sent by the investor completed with the following details:

  • Investor Name.
  • Investor Number.
  • Company Name.
  • Quantity of securities to be transferred.
  • Identify the transfer is to be made from 'Dubai Financial Market' (tick the appropriate box on the form).
  • Broker account number in the other market.
  • Custodian’s stamp and authorized signature.
  • Submission of fees by custodian.
Al Salam Bank – Sudan have different procedures for withdrawing shares from the Dubai Financial Market (DFM) to the Khartoum Stock Exchange, the investor should follow the below mentioned procedures:

  • Complete the Securities Deposit & Withdrawal Request Form. (tick the withdrawal box)
  • Attach a passport copy or ID copy of the individuals.
  • Attach a visa copy (for non-UAE nationals).
  • Attach the Articles of Association and Commercial Registration, which should illustrate the company’s nationality.
  • Submission of fees.
Note: In some cases there are requests to withdraw Gulf Financial House shares from the Dubai Financial Market (DFM) to the Al Bahrain Stock Market to re-transfer shares to the Al Kuwait Stock Market, and the reason for this is there is no sub-listed agreement signed between the DFM, Gulf Financial House and the Kuwaiti Company for Clearance. And in this case, usually the investor's letter for withdrawal of the shares does not mention the investor 's number or investor 's account details with the broker. The DFM Depository Department will accept the letter under the condition that the letter must specify that the reason to transfer securities to Bahrain is in order to re-transfer the securities to the Al Kuwait Stock Market.

The requirements of securities transfer to the Dubai Financial Market (not associated with delivering shares certificates to complete depositing procedures):

The company 's registrar should send an official letter to the DFM giving instruction to deposit the securities to the investor’s account at the DFM. The letter should include the following details:

  • Investor Name.
  • Investor Number.
  • Company Name.
  • Quantity of securities to be transferred.
  • Custodian’s account to deposit the securities in the agent’s account.
  • Signature of authorized signatories (if any).
  • Submission of fees by custodian.

Statements

We provide the following options to receive your statement by email & fax:

  • Free registration to the daily trades statement by email,sms & fax by filling in the “Changing/Adding of Investor Information”.
  • Free registration  to the Annual statement through DFM Customer Services on +971 4 305 5555 or email to client@dfm.ae.
  • Subscription to the Statements daily, weekly & monthly and indicate your preference by email or fax.
  • Online registration to the eServices for instant access to your stock portfolio details anytime.

You can subscribe to receive your statements daily, monthly, quarterly or yearly by completing the Statement Subscription Form and indicating your preference. Fees are applicable for this option. DFM also provides Free Annual Statements; you need to register through DFM Customer Services on +971 4 305 5555 or email to dividendservices@dfm.ae
DFM provides a free Daily Trades Notification service by SMS, email or fax. By end of day, any investor who traded will receive an SMS, email or fax of the total trades executed during that day. If you wish to receive the daily trades by email or by fax instead, please complete the Changing/Adding of Investor Information form.
Yes, provided you are registered to DFM’s eServices. Once registered, you can login at www.dfm.ae and access your online statements.
The custodian should send an official letter requesting an Audit Confirmation Letter, which should be addressed to the related auditors.

The letter should mention the following:
  • The settlement date.
  • Client name and investor number.
  • The address details of the auditor.
  • Submission of fees.
  • The custodian’s stamp and authorized signature.

Dividends Services (iVESTOR)

Applying for an iVESTOR card requires a fee (please refer to the Fees section). 

For new investors, please complete the Investor Number Request Form.

To apply for an iVESTOR card and if you have an Investor Number (NIN), kindly complete the iVESTOR Card Request Form.

For the option of having dividends credited to an iVESTOR Card, you must first have an iVESTOR card and then complete the Cash Dividends Request Form to indicate your preference. 
Your can apply for the iVESTOR card once you open an Investor Number (NIN) with the DFM.

For new investors, please complete the Investor Number Request Form.

To apply for an iVESTOR card and if you have an Investor Number (NIN), kindly complete the iVESTOR Card Request Form.

There is no annual fee, the card is valid for 5 years.
Deposits or withdrawals made from Emirates NBD cash machines are free of charge while withdrawals from cash machines of other banks may be chargeable.
Yes you can. Please complete the iVESTOR Card Services Form, and choose whether to receive by email on a monthly basis or quarterly by post. Ad hoc statement requests are chargeable at 10 AED per statement.
For lost cards, please contact DFM iVESTOR Card Services on +971 4 305 5555, select option 3. For replacement of card, please complete the iVESTOR Card Services Form and submit by email to dividendservices@dfm.ae or by fax to +971 4 305 5189. (Fee AED 50)
This is possible provided the investor’s representative presents a duly authenticated Power of Attorney in which it states a clause authorizing the representative to apply for an iVESTOR card on behalf of the investor.
The iVESTOR card is only applicable for individuals and sole proprietorships.
The iVESTOR card is only applicable for individuals and sole proprietorships.
Dividends will be deposited to your iVESTOR card account only for listed companies who decide to distribute dividends using DFM as the paying agent.
Please contact DFM iVESTOR Card Services on +971 4 305 5555, selecting option 3.
Once you receive your card, an SMS will be sent to you with your activation code. Upon receipt of the activation code, please contact the DFM iVESTOR Card Services on +971 4 305 5555 and select option 3, to activate the card.
It will take approximately 10 days to receive your iVESTOR card. The card will be sent to your address. Once the iVESTOR card is sent, you will receive an SMS notification together with your activation code.

As a cardholder, please ensure you activate your iVESTOR card immediately to start using the card and benefit from the services.
You can cancel your iVESTOR card by completing the iVESTOR Card Services Form and submitting by email to dividendservices@dfm.ae or by fax to +971 4 305 5189.
Activation of the iVESTOR card is authorized only by the iVESTOR cardholder.
Yes, the iVESTOR card is also a cash card so you can withdraw from the credit balance on your iVESTOR card from any VISA or PLUS marked ATMs* worldwide.

*Subject to bank charges.

Dividends Services (Bank Account)

Yes you can apply for an iVESTOR card and also select your preferred mode of payment for receiving any due dividends, i.e. either by crediting to your iVESTOR card account, your Bank Account or by cheque payment.
There are charges for every dividend transfer per company. The charge is deducted from the dividend amount.
If your dividend amount per company is less than 500 AED, the bank account payment option is not applicable. Instead, you will be paid by credit into your iVESTOR card account should you have an iVESTOR card.
Yes, the bank account option is applicable for all types of investors.
No, you must only provide your own bank account details and not that of a third-party.
You will receive your dividends via direct credit to your Bank Account only for the companies who decide to distribute their dividends through the DFM as the paying agent and if you have selected the bank account option for receipt of dividends.

Dividends Services by DFM (Cheques)

Dividend cheques of companies distributed by the DFM as the paying agent can be replaced at the DFM by sending a request letter along with a replacement fee of 50 AED. Dividend cheques for companies where DFM is not the paying agent should contact the listed company directly.
Cheques are valid up to 6 months. If the cheques remain unrepresented after 6 months, the original cheque must be submitted to the DFM for re-validation. If it exceeded 1 year, then a replacement cheque is required by sending a request letter or submitting original cheque.
.
No, because all dividend cheques are issued as account payee cheques. It must be deposited into your account.
During dividends distribution all cheques are mailed to the address  resgistered in DFM. For returned/replaced cheque you can request from DFM for a courier service (fees apply) or you can arrange with a courier service to collect your cheque from the DFM, or you can authorize a person to collect your cheque on your behalf.
Cheques are mailed to your postal address registered with the DFM.
If the dividends of the company are distributed by the DFM, please contact us at +971 4 305 5555 and select option 4 or email dividendservices@dfm.ae . If they are not distributed by the DFM, please contact the listed company directly.

Custodians

The following are the requirements to become a custodian at the DFM:
  • Provide a copy of valid custody license issued by the Securities and Commodities Authority (SCA).
  • Sign the custody agreement with the DFM.
  • Provide the DFM with an authorized signatories list.
  • Provide the DFM with a formal letter that identifies their member code in DFM’s system.
  • Send an official letter to identify the preferred payment method in the case of dividend distribution and sign the related admission and undertaking letter provided by the DFM.
  • Send an official request for an annual subscription to the electronic connection to the CSD Equator system AS400 (optional).
  • A formal letter specifying the list of email addresses which the daily electronic reports will be sent to as well as another list for other issues related to DFM announcements and notification purposes.
  • A formal letter that includes the settlement account numbers (AED and USD) with one of the DFM settlement banks.
Yes absolutely, custodians need to ensure that a copy of the renewed custody license once obtained from the SCA, is submitted to the DFM in order to ensure the continuity of services.
Yes you can. You need to submit an official request for an annual subscription for the electronic connection to the CSD Equator system AS400. The letter should specify the following:
  • No. of usernames required.
  • Each username’s authority level (view, entry, post, approve) for the Registry & Stock Transfer functions.
  • Attach related fees of annual and installation fees (please refer to the related fees here).
  • Note: the custodian may request to change the authority level of a certain username in writing (not subject to fees), or re-set the password, or replace a lost token in writing (both subject to fees). 

    To assure the continuity of services, custodians should ensure timely payment of the annual fees for each user and show proof of payment to CSD to avoid any disconnection.

    Note: In the case of any technical error faced during the subscription, custodians are required to report this via e-mail with a full description of the error type as well as provide CSD with related print screens if possible. Please note that custodians will be unable to generate reports from the system; the required reports will only be provided by the DFM upon request.
Before custodians send the request of opening an Investor Number (NIN), they need to ensure that their potential client does not hold an existing investor number with the DFM, and in case the client does already hold an investor number with inventory positions, the custodian should send a transfer request along with the account opening request. The requirements for migrating an existing client to custody are as follows:
  • A letter from the custodian stating the following details:
    • NINs of the transferor and transferee.
    • Investor name of transferor and transferee.
    • List of symbols with quantities which need to be transferred.
    • Global custodian name (if applicable).
    • An undertaking that there is no change in beneficiary owner pertaining to the mentioned transfer.
    • Clear instruction to close the transferor NIN together with the underlying accounts after the transfer is complete.
  • Custodians should also provide a copy of the client’s written instruction of the same (signed). The signature will be verified against the signature on the “Entry of Investors Data” Form initially submitted (this only applies when the client is moving securities to a custody account).
  • Global custodian letter / SWIFT instruction of the same (if applicable).
  • Transfer fees (refer to Custodian Fees)
In case the existing client wishes to move out of custody and holds inventory positions, the custodians should send a transfer request and attach the account opening request which should be prepared by the client or their broker. The requirements of the transfer request are as follows:
  • A letter from the custodian with full instructions:
    • NINs of the transferor and transferee.
    • Investor names of the transferor and transferee.
    • List of symbols with quantities which needs to be transferred.
    • The clause "there is no change in beneficiary owner pertaining to the mentioned transfer".
    • Clear instruction to close the transferor IN together with the underlying accounts after the transfer is complete.
  • Global custodian letter / swift instruction of the same (if any).
  • Transfer fees (refer to Custodian Fees).
Notifications are sent via email to all market participants of corporate actions once released. The custodian should arrange to provide an official letter with a list of e-mail addresses to be included for such notifications.
Custodians can post their profiles in the DFM website for potential clients within the Custodians section. Basically, the profile should contain a brief about the bank / financial institution and contact details related to the custody. Requirements to be sent via e-mail are:
  • Custodian profile content in Arabic.
  • Custodian profile content in English.
  • Custodian company logo (jpeg format).
Note: In case the custodian wishes to update the content, please submit the request via e-mail and attach the updated content in both languages: Arabic and English.
You can find all CSD related forms here.
You can find all CSD related fees here
If the investor wishes to obtain a statement evidencing ownership of the securities, the following requirements needs to be submitted:
  • Fill the “Balance of Securities Statement” Form and deliver it either by hand, fax, or mail together with the related fees stamped and signed by the authorized signatory.
Yes, you can by submitting an official letter of request stating the same, stamped and signed by an authorized individual along with the related fees.

Note: The report can only be obtained for “up until date” and not for a previous date.
Fees are payable through the following modes of payment:
  • Deposit the required fees in AED to the Dubai Financial Market bank account with Emirates NBD – A/C Number: 0412063720929 and send a copy of the receipt to the DFM.
  • Transfer the required fees amount in AED to Dubai Financial Market's account with Emirates NBD – IBAN Number: AE370260000412063720929 and send a copy of the SWIFT instruction to the DFM.
  • Issue a cheque made payable to ''Dubai Financial Market'' for the fee amount in AED.
  • Pay the amount in cash.
The following list illustrates the different approved types of external transfers available at the DFM:
  • Family / Inheritance / Judicial Transfers (charged to the Transferee only)
  • Transfer of securities from investor to another:
    • Due to pre-regulated market securities assignment
    • Or due to assignment deed.
  • Merge between Individual and Sole Proprietorship and vice-versa
  • Transfer of securities from company to a company’s partner and vice-versa, from company to a subsidiary or from sole proprietorship to company and vice-versa
  • Transfer of securities from company to a company’s partner and vice-versa, from company to another company or from sole proprietorship to company and vice-versa (up to 2nd degree kinship)
  • Transfer of securities from Individual A/C to Joint A/C and vice-versa or from Joint A/C to another
  • Transfer of securities from Individual A/C to Joint A/C and vice-versa or from Joint A/C to another (up to 2nd degree kinship)
  • Transfer of Securities from Founder to another Founder
  • Transfer of Securities from subsidiary to company or vice-versa
Kindly click here to view the requirements related to the above transfers. 
DFM public holidays are subject to regulatory approval before each holiday. Therefore, there is no pre-determined holiday list available. The DFM sends a notification of holidays to its participants via e-mail immediately upon receipt of regulatory approval.
In order to change a name of a client under custody as a result of an official name change, the following must be submitted:
  • An official letter requesting the change of name identifying the investor's current / old name and Investor Number (NIN).
  • Global custodian’s letter / SWIFT instruction of the same.
  • Attach the official supporting document of the name change (stamped and signed by an authorized person).

  • The payment methods include: iVESTOR, cheque or wire transfer.
  • IBAN number for AED and USD accounts details are mandatory (if wire transfer is selected as method of payment).
  • Sign and attach the related admission and undertaking letter provided by the DFM (see letter content letter template section at the end of the handout).

  • Bank Account Transfer within the UAE (Custodians): AED 25 per record - min. AED 150.
  • Bank Account Transfer outside the UAE (Custodians): AED 25 per record - min. AED 250.

It is important to note that the end clients or global custodians cannot be directed to contact the DFM or submit documents directly.
No, the format / content of the agreement is not within the purview of the DFM.
All Insiders with access to confidential company information must fill a form to obtain the approval of Market Control Department in order to trade. An approval will be provided if there is no conflict with any of the periods of prohibition.

Issuers

A core objective of the DFM is to provide valuable services to its listed companies which will reduce their efforts and costs if they were to appoint a third party or manage internally, as many of the services are electronically available via eServices on the DFM website. Issuer services are categorized upon your needs and include Sharebook Services, Corporate Actions Services, AGM and EGM services, and many other services related to communications and investor relations. Please click here for the full list of issuer services.
You can subscribe to our interactive web-based Electronic Shareholder Analysis Report (eSAR)

Or you can subscribe to electronic reports (eReports) produced and customized upon request based on various report options.

Or request for an electronic connection to your sharebook.

Otherwise simply request customized reports based upon your specific needs as and when it is required. Each of the above options have different features and advantages and are subject to fees. For more details, kindly email us at issuers@dfm.ae or view detailed list of Issuer services and eServices.
eSAR, the Electronic Shareholder Analysis Report is a web based interactive reporting tool for measuring, managing and analyzing corporate financial performance in terms of investor behavior and share price index to maximize its effectiveness and optimize the returns - both financial and strategic. Understanding share performance allows listed companies to be more efficient in defining corporate strategy and long-term vision. Click here to view full features.
  • Daily Trade reports
  • Movement report
  • Top shareholder per symbol (the issuer chooses the number)
  • Holder of certain percentage in the company
  • Trade summary per client type and citizen category
  • List of investors pledge account balance
  • Rolled in - out investors by symbol
  • New investors by symbol
  • Stock adjustment by symbol (mostly requested by dual listed companies)
  • Active investors by volume / value
  • Sharebook
  • Trade Details for a symbol
  • Top 15 trades (buyers and sellers)
Register on eServices for electronic reports.
Yes customized reports are available subject to fees. Click here.
  • Yes you can by sending an official letter from the company or company registrar.
  • Or by submitting the Changing/Adding Request Form filled and signed by the investor and verified by the issuer.
The relevant notices are circulated directly via email to the company official and main contact with the DFM. 
  • The sharebook is linked with the trading and CSD systems, so whenever a trade is executed or a movement is approved, the balance is updated automatically. 
  • This is the same when investors' data is updated by the CSD, such as contact details, this is immediately reflected on the sharebook. 
The eCalculator for issuers is designed to calculate most commonly requested services fees such as:

  • Corporate Action fees
  • Sending a Statement of Account
  • Sending SMS messages 
  • Electronic storage of reports 
  • Electronic storage of the share register 
  • Transfer from company account to employees account 
  • In the case of a dividend distribution, you will receive the Sharebook and Pledged Shares Report. 
  • In the case of a dividend and bonus shares distribution, you will receive two sharebooks, one before the bonus distribution to allow you to calculate the dividend before the bonus addition – Pledge Shares Report – and the second sharebook after with the Bonus Addition & Bonus Shares Report, which shows you the bonus added per IN. 
  • In the case of a bonus shares distribution, split and conciliation, you will receive the Sharebook & Bonus Shares Report. 
Corporate actions are effective on the book-close date. 
According to the date on the official notification from the company.
A private company is one where its shares are not traded on a market. The transfer between shareholders can be executed by OTC “over the counter'" requests.
Securities of a dual-listed company are listed in more than one market.  
  • Transfer from a company to a board member
  • Transfer between company’s board members
  • Transfer of securities from a listed company’s account to employees
For a complete list of services and fees please click here.

No. You can subscribe to DFM's eSAR, the Electronic Shareholder Analysis Report, a web-based interactive reporting tool for measuring, managing and analyzing corporate financial performance in terms of investor behavior and share price index to maximize its effectiveness and optimize the returns - both financial and strategic.
The subscription period is for one year expiring at the end of each December for each year, and the first subscription-year shall be from the date of application until the end of December of the same year.
DFM has dedicated Issuer Affairs and CSD teams to ensure your requests are responded to swiftly. The time-frame taken to complete a service request depends on the nature of the request, most service requests are fulfilled within two working days. However, sharebooks usually issued with the book closing date specified by the issuer, if the requests are received one day a head. 

eServices allows you to submit and track the progress of your requests online. 
  • Hard copy (printed)
  • Soft copy (via email) 
Settlement is completed after two market days from the trading date.  
You can find all related fees for Issuers within the Fees section.  

Shari'a

Trading in shares in the sense of buying and selling is permissible according to Shari'a provided the relevant contracts are Shari'a compliant. However, if such contracts are Shari'a repugnant such as short, margin and forward sale, then it is not permitted.
If the shares were purchased for the purpose of trading in them then its annual (Hijri year) payable Zakat shall be 2.5% of its market value. Whereas, if it was purchased for the purpose of profiting and not for the purpose of trading then its Zakat will be equal to 10% of its net profit, whether distributed or not.
Prohibited (Haram) income is the interest or profit earned from trading in forbidden items.
The Unified Committee of Islamic Banks for Shari'a Screening of Equities associated to the Unified Shari'a Board chaired by Dr. Hussein Hamed Hassan. The Dubai Financial Market (DFM) can also be referred to for such information.
According to the DFM shares' Standard, it is when the company allocates profit to the shareholder; however, the Securities & Commodities Authority (SCA) states that the profit is entitled to the holder of the share on the tenth day after the decision to distribute dividends is made in its General Assembly, and since the SCA is binding one should abide by it. Therefore, whoever holds the share at that time must implement the exclusion at the earliest opportunity.

Yes it is permitted provided the following Shari'a parameters are adhered to:

  1. The Shari'a repugnant income is less than 10% of total revenue which is subject to purification by the shareholder.
  2. The interest-based borrowing does not exceed 30% of total assets.
  3. The interest-based lending does not exceed 30% of total assets.


It is not permissible to deal in preferred stocks, if preferred stockholders have a preferential right in terms of profit distribution prior to other shareholders or in terms of receiving their rights prior to other shareholders in case of liquidation. Whereas if the preference is related to administrative matters (like voting rights), then dealing is permitted.

Non-Shari'a compliant companies either have prohibited income exceeding 10% of the total income, or it lends or borrows with interest beyond 30% of the total assets. Trading in such companies is not permissible even if the Shari’a repugnant income is totally purified.

In principle it is not permissible to deal in a company if its activity is Shari’a repugnant.
It is not permissible to hold shares in companies that do not fulfill the Shari’a parameters previously mentioned.

All development projects, including industrial, mining, extractive and infrastructural projects can be financed through Mudaraba, Musharaka and Istisna' Sukuk.

The advantages of financing through investment Sukuk are as follows:

  1. It is a finance which is based on rights in ownership rather than the lending of money.
  2. The Sukuk holders herein share the risks of the projects and also share the project proceeds with the Mudarib or the managing partner as per their agreement.
  3. It does not require the taking of securities since the financiers own the project until the redemption or the maturity of the Sukuk.
  4. The Mudarib or the managing partner may own the project before or at the end of the financing period.


Investors who are willing to trade in Shari'a compliant shares.
The profit that is subject to Zakat being 10% thereof, should include realized profits due to the increase in value of its assets and goods, even prior to selling the same.

Short sale is a sale of shares that the seller does not own. Where the seller borrows such shares to be returned later, for the purpose of making profit by selling it at a price that is higher than the price at which the seller will buy in the future and return to its lender (the owner).

The actual percentage of Zakat is 2.5% for every Hijri year and 2.5775% for every Gregorian year.

It is valid to trade investment Sukuk which are used to finance projects so long as they represent tangible assets or usufructs as is the case with Mudaraba, Musharaka and investment Wakala Sukuk. This is because it is valid to sell the underlying assets of these Sukuk on any agreed price, spot or deferred, whereas the finance Sukuk, such as Murabaha and Istisna' Sukuk, and since they represent debt instruments and are normally of short maturity periods, these can be traded only at face-value and against a spot price.

The Maliki school, however, unlike the remaining Fiqh schools, allows upon the fulfillment of certain conditions the sale of the Salam asset before its delivery. Nevertheless, the Salam Sukuk holders or their representative still can sell, to a third-party through a parallel Salam, an asset similar in its specifications to the Salam asset. The delivery date in this case shall be later than the delivery date of the original Salam asset.

It is permitted to give, in the prospectus, the Sukuk originator the right to redeem the Sukuk before maturity and pay their value to their holders. This right shall be based on an undertaking given by the trustee who holds the Sukuk assets on behalf of their owners. 

Although it is not a Shari'a requirement to provide an expected rate of return since Shari'a recognizes only the actual realized profit, it is very helpful to do so because this rate functions as an indicator to the profit to the Sukuk holders; besides, it forms a point of reference for the Sukuk manager so that he may be given, as an incentive, what exceeds this rate.

It is valid to amend the duration and terms of the Mudaraba provided the amendment applies only to the remaining period, with no retroactive effect. Among the valid amendments are the profit distribution ratio and the incentive. Any amendment must, however, be mutually agreed upon between the two parties (the Sukuk manager and Sukuk holders or their representative).

The Sukuk manager is entitled to willingly waive part of his profit in the Mudaraba Sukuk, or any part of his commission in the Wakala Sukuk. Any waiver of this kind, however, does not bind him in any way to give up any other amounts in the future.

Brokers

The DVP (Delivery Versus Payment) procedures are meant to ensure that investors using the services of custodians for safekeeping of securities and as agents for financial settlement who settle their trades based on DVP principles, whereby securities are delivered only if payment is received and there are matched settlement instructions received by the custodian to settle the trade.

Please refer to the following useful downloads:

DVP Procedures for Clearing Participants
Updates to DVP Procedures for Clearing Participants
No, if the Local Broker does not trade for clients using custodians for settlement, the impact to the Local Broker will be limited to the new buy-in feature introduced by the DFM where the Local Broker can participate in a buy-in by placing offers to any buy-in bids under an open status. Only Local Brokers which trade for clients using a Local Custodian for settlement will have to follow the DVP process.
Please refer to the Lien of Securities for pledging of securities.
The Broker can increase his Trading Limit through the following options:
  • Submit a new bank guarantee to the market including the amount of increase.
  • The bank issuing the guarantee sends an official letter to the market stating that they bear the responsibility for the increase in the bank guarantee limit, provided they undertake to pay entitlements due as a result of default by the broker.
  • Deposit an amount of money either cash or cheque in DFM's Account with: 
  1. Emirates NBD, or
  2. Standard Chartered Bank.
You then send a copy of the credit advice along with an official letter from the Broker requesting to increase the trading limit to Fax no.: +971 4 331 7597 or +971 4 305 5198 or by email to Clearing&Settlement@dfm.ae

  • Submit an official letter to the CSD Division requesting to increase the Trading Limit by using the settlement due payments which are to be collected in the next settlement date (T+1). 
  • Submit an official letter to the CSD Division requesting to freeze securities owned by the Broker or one of its owners. In this case, the Trading Limit will be increased by 50% of the securities current value in the Market. In case the Broker exceeded the original bank guarantee value, shares shall unfreeze on (T+2) only but if the broker wishes to unfreeze the shares on (T+1), he should deposit in the DFM account the amount exceeding the original bank guarantee value.


The requirements are as follows:

  • Minimum amount must be AED 20 million.
  • Brokers can split the guarantee between the DFM and ADX by submitting to each market a new bank guarantee and copy of the bank guarantee that is submitted to the other market including the other market receipt stamp, provided the amount of both guarantees is not less than AED 20 million with a minimum of 2 million AED per market.
  • The broker must follow DFM’s Format for Bank Guarantee letters
  • The Issuer bank must be licensed under the Central Bank of the UAE
  • Submit the Original to the CSD - Clearing & Settlement department via one of the following options:
The broker must coordinate with the Bank Guarantee issuing bank to send an official letter addressed to the Clearing & Settlement Department requesting DFM to issue a No Objection Letter for the reduction of the Bank Guarantee amount.
The Broker must coordinate with the Issuer bank of the Bank Guarantee to send an official letter addressed to the Clearing & Settlement Department requesting DFM to cancel the requested bank guarantee.
If the Broker desires to change settlement bank and deal with the other DFM settlement banks, they must follow the steps below:
  1. Send an official letter addressed to the Clearing & Settlement Department stating the following:
    • Settlement Account Number with the New Settlement Bank
    • Determine the date on which the settlement will commence with the New Settlement Bank
    • Undertake to pay all of its obligations with the Current Settlement Bank
  2. Send a copy of the undertaking letter that is addressed to the New Settlement Bank (Stating the new settlement account in AED and USD).
  3. Send a copy of the new Settlement Bank’s letter confirming the settlement account number and the brokerage company name.
  4. Send an undertaking letter addressed to the DFM of not trading in dollars (in case the broker does not wish to open a dollar account). 
Yes, unless the bank guarantee has an auto-renewal feature.

DvP

As part of DFM’s deployment of its “Delivery Versus Payment” (DVP) settlement mechanism, the DFM addressed the need to operate dual accounts to mitigate unlimited access by local brokers to the trading accounts.

To achieve full control by local custodians over client accounts, DFM is implementing processes to provide local custodians the ability to reject buy and / or sell trades for settlement if matched settlement confirmations are not received from clients.
The market changes are summarized as follows:
  1. These enhancements impact Brokers dealing with clients which use a Local Custodian for the settlement of trades, whereby a Local Custodian can reject both securities and cash settlement of purchase and sell trades if it does not receive settlement instructions from its clients.
  2. A ‘buy-in’ mechanism to facilitate settlement of rejected sell trades is also introduced whereby Brokers which do not trade for clients who settle trades using a Local Custodian will be able to participate in a buy-in, by selling to any buy-in bids in the DFM buy-in board.
  3. A Late Confirmation period of up to T+4 will be introduced for Local Custodian clients to confirm settlement of trades. The Late Confirmation period is however subject to the broker agreement.
  4. A Local Custodian will now have full control of securities making it unnecessary to operate a dual account structure. This means that all securities may be held in one account of the Local Custodian (i.e. the Agent Trading account). 
The enhanced DVP processes are only applicable to clients using a Local Custodian for settlement and not to retail investors settling trades using their direct accounts with Local Brokers.
Any investor using a Local Custodian to settle their trades executed through a Local Broker will be impacted by the changes.
No. There are no changes to the way trading on the normal DFM market is conducted. There is an alternative option for investors to sell securities via the DFM buy-in board. Investors will need to inform their Local Brokers if they intend to sell securities via the buy-in board.
No, the enhanced processes merely allow clients using Local Custodians for settlement more time to provide settlement instructions to the Local Custodians. This Late Confirmation Period is subject to agreement by the executing Broker and is subject to penalties.
Generally, the enhanced processes allows a Local Custodian to reject both purchase and sell trades if it does not receive (matched) settlement instructions from its clients. The DVP changes also provides a ‘buy-in’ mechanism to facilitate settlement of rejected sell trades.

This means that the Local Custodian will now have full control of securities. Therefore, there will no longer be a need to establish segregated custody and trading accounts in order to mitigate the risk from Local Brokers having unlimited access to the trading accounts. The custody account will remain as an optional feature whereby clients will have a choice to determine how they wish to manage assets.
The Late Confirmation Period is from T+2 to T+4 or S+2. The Late Confirmation Period is a market infrastructure provided by the DFM to facilitate trade settlement for clients using a Local Custodian for the settlement of trades. It is a commercial decision of the Local Broker to determine whether or not a Late Confirmation Period should be offered to its client using a Local Custodian for settlement.
Yes. A Local Custodian can reject purchase / sell trades if no matched settlement instructions are received from clients.
When a Local Custodian rejects a purchase trade, the buying broker will pay DFM the cash settlement obligations and DFM will credit the purchased securities to the designated rejection account under the control of the Local Broker.
Yes. However, the ‘Late Confirmation Window’ for purchase trades is subject to the client / broker agreement on due dates for late payments. The proposed ‘Late Confirmation Window’ for purchase trades is merely a facility provided by the DFM to facilitate any subsequent transfers arising from a settlement agreement between the client and the broker.

Clients may utilize a ‘Late Confirmation Window’ within which instructions may be provided for settlement of a rejected purchase / sell trade subject to late settlement agreement between the client and its broker. This Late Confirmation Window begins on T+2 and will end on T+4. The last settlement day of the Late Confirmation Period will be T+4.
Yes. Acceptance of the Late Confirmation by the Local Broker is on a discretionary basis and provided that the rejected trades have not already been settled by the Local Broker in the market either directly or via the buying in mechanism.
Yes. A client has the option to settle rejected purchase trades within the Late Confirmation Period, therefore beginning T+2 and ending on T+4, subject to agreement by the Local Broker and provided the local broker has not sold the purchase securities.

The Local Custodian will contact the Local Broker to arrange for the transfer of securities back to the client’s Agent Trading account subject to payment by the Local Custodian to the Local Broker first.
If a client does not provide settlement instructions within the Late Confirmation deadline to settle the purchase trade, the Local Broker will dispose of the securities underlying the rejected purchase trade latest by 2 market days after the end of the Late Confirmation Period.
Once a sell trade is rejected by the Local Custodian, DFM will determine if the Local Broker has sufficient balance of securities in the designated rejection account. If there is sufficient balance in this account, DFM will debit this account, settle the rejected sell trade and pay the Local Broker the cash proceeds on T+2.

If the Local Broker does not have sufficient balance in the designated rejection account, DFM will create a negative available balance under this account and will retain the cash proceeds until final resolution of the failed trade. DFM will retain the ‘Pending’ status flag on the securities held under the client’s Agent Trading account until final resolution of the failed trade. In order to rectify the negative available balance in the designated rejection account, the following 4 options are available:

  1. Local Broker buys securities directly in the market for settlement before the last settlement day of the Late Confirmation Period
  2. Late Confirmation Window can be utilized wherein client provides matched settlement instruction to Local Custodian subject to agreement by the Local Broker
  3. The buy-in mechanism is utilized by the Broker / DFM, or
  4. A mandatory cash closeout against the original seller if the above options are unsuccessful to resolve a sale rejection. 
Yes. The client can send settlement by providing matched settlement instructions within the Late Confirmation Period, therefore beginning T+2 and ending on T+4, provided the Local Broker has not settled the sale rejection.
Yes penalty will be applied for a minimum of AED 500 or the total order values of each sell rejection transaction X 0.05%.
Yes penalty will be applied for a minimum of AED 2500 or the total order values of each sell rejection transaction X 0.25%.
The Transfer Fees will be levied for two situations:

  1. T+5 Transfer Fee: this Transfer Fee will be applicable where the Broker failed to transfer the paid purchased securities from the Client Buy Rejection Account to the client’s Agent Account of a Custodian by T+4 upon receiving payment from the client within the late confirmation period of T+2 to T+4.
  2. T+6 Transfer Fee: this Transfer Fee will be applicable where the Broker failed to transfer unpaid purchased securities from the Client Buy Rejection Account to the Broker’s Buy Rejection Sellout Account by the existing prescribed T+5 deadline.
A buy-in may be used only by a Selling Broker when there is a negative balance in the designated rejection account.
The features of the buy-in mechanism are as follows:

  • The buy-in process is managed via the DFM Equator system and is not part of normal market trading. The buy-in board will be available for input of offers by new sellers daily between 2.30pm and 2.45pm UAE time. Brokers with negative available balances can opt to post buy-in bids to the buy-in board from 2:15pm on T+2 onwards until the settlement day before the last settlement day of the Late Confirmation Period.
  • All Brokers (including the selling Local Broker) will be permitted to participate in the buy-in and offer their own securities or their client securities in the Buy-in by quoting the relevant NIN investor number. The client whose securities are being bought-in cannot offer his securities to the buy-in. Other clients may choose to offer their securities in the buy-in through their Local Broker.
  • The maximum buy in price can be the daily closing price plus fifteen percent (duly adjusted for any corporate actions).
  • Partial completion of buy-ins will be allowed.
  • The matching algorithm is best price offered, volume and time priority until the quantity is obtained.
  • The securities will settle on the same day of the buy-in, whilst the cash will settle on the next day (i.e.T+1 basis). This is mainly due to the fact that the Central Bank of the UAE is closed by this time and the cash can only move on the next day.
  • DFM will pay the buy-in cash proceeds to the new Selling Broker. If the buy-in price is greater than the original traded price, the Local Broker must pay the difference. However, if the buy-in price is lower, then the DFM will retain the gains.

Where the buy-in against the Local Broker fails, a cash closeout against the Local Custodian client will be invoked by DFM.

Investors

Pledgee Banks

The pledgee bank may apply to the Court to issue an order of sale and submit such an order to the DFM stating therein, the investor's name, investor's number, the name of the security and the number of securities pledged in favor of the pledgee bank.

Depository

A securities depository is an entity that provides securities accounts, central safekeeping services, and asset services, which may include the administration of corporate actions and redemptions, and plays an important role in helping to ensure the integrity of securities issues (that is, ensure that securities are not accidentally or fraudulently created or destroyed or their details changed).  DFM operates a central securities depository whereby all investors shareholdings and trades in DFM-listed securities are electronically recorded.
No, the Dubai Financial Market (DFM) is scripless ie. there are no physical securities certificates issued by the issuer. Shareholdings are reflected electronically in DFM’s electronic share registry system as prescribed for by UAE securities law.
Yes, you will require an Investor Number (NIN) if you wish to hold DFM listed securities. A NIN can be applied for as follows:
  • directly with the DFM;
  • through a DFM broker member;
  • through a DFM custodian.
Once a NIN has been obtained, an investor will be assigned a custody account for the safekeeping of securities. An investor can open one or more trading accounts with DFM broker members for trading purposes.
Trading accounts are required if an investor wishes to trade securities. Trading accounts are opened with a DFM Broker Member.

Investor Relations

DFM PJSC shares are traded on the Dubai Financial Market. View DFM company profile here. 
Please sign in to the DFM Market Watch to access DFM real-time data. For more information on the DFM company performance view Fundamentals.
DFM went public as a listed company in the year 2007 at a share price of AED 1 per share.
The 2013 Annual Meeting of Shareholders was held on March 3, 2014 at the DFM Trading Floor.
Our website contains a variety of links regarding information on DFM:

About DFM
Listed Securities
Fundamentals
Media Centre

Each year, the external auditor is appointed by shareholders during the AGM. Price Waterhouse Coopers (PWC) was appointed for 2014. 

View the latest DFM PJSC financial reports here.
DFM's vision, mission and values, as well as how we intend to deliver on our mission, can be found in Understanding DFM.

DFM Investor Relations can be contacted by:

Tel: +971 4 305 5650 
Email: ir@dfm.ae
DFM's fiscal year is from January 1st to December 31st.
The latest financial reports as well as investor presentations can be found online within Financial Reports and Presentations
Yes. The DFM Initial Public Offering (IPO) was open to both UAE and non-UAE nationals, including individual and institutional investors. DFM shareholders represent a mix of local and international investors and institutional firms from different nationalities.

Brokers

A request should be sent by the Securities Commodities Authority (SCA) to the DFM Market Operations Department and another email sent to the brokerage company of the required documents to be submitted. Once all the required documents have been received, a copy of the Accreditation Letter will be emailed to the brokerage company. Kindly note that such requests are subject to fees for non-local nationalities.
We require an official letter of request which should be signed by the authorized person along with the company’s stamp, and include the following details:
  • Employee name in English according to the passport for system entry.
  • Specify your request for one or both systems: X-Stream and / or Equator (AS400) 
  • Attach the DFM accreditation letter with your request for username requests on the X-Stream system.
  • Specify privileges for any username request on the Equator (AS400) system:
    • Query / Read Option
    • Post / Write Option
  • Specify the required usernames on the X-Stream system:
    • Trader Username
    • Public Username
    • Internet Trading Username
    • Other (please specify)
The username request (letter) shall be submitted to the DFM Market Operations Department to proceed accordingly. Kindly note such requests are subject to fees.
Please email the DFM Market Operations Department an official letter of request which should be signed by the authorized person and include the company’s stamp. Kindly note such requests are subject to fees.
To practice the brokerage profession in the UAE's financial markets, a brokerage firm will need to get a license from the Securities & Commodities Authority (SCA). The brokerage firm may then submit an application for a license to practice the profession at the Dubai Financial Market. The following are key requirements:
  1. SCA License: To be licensed by the Securities and Commodities Authority.
  2. Bank Guarantee: Submission of unconditional bank guarantee, in favor of the Clearing House, for a minimum of AED 20,000,000 and payable upon request from one of the banks licensed in the UAE. The amount of such guarantee shall increase concurrently with the increase in the size of the Broker’s business, based on the decision by the Market Board of Directors.

  3. Note: If the Broker has entered into more than one Market, it shall be possible for it to apportion its bank guarantee between the Markets in which it has entered, in such manner that the total portions of the guarantee is not less than AED 20,000,000.
  4. Clearing, Settlement & Depository:
    • The Brokerage House has the option to select one of the settlement banks either Emirates NBD,or Dubai Bank or Standard Chartered Bank in order to open a settlement account to be used by the Clearing and Settlement Department in both UAE Dirhams (Compulsory) or US Dollars (Optional) currencies. Any member will not use US account must submit undertaking letter.
    • Provide an official authorization of an overdraft from the bank in case of any illegal actions.
    • Details of any legal rulings or cases against the broker in the past three years, which have not been settled to date.
  5. Company Information:
    • Names of owners and percentage of ownership in the applicant company and in any company dealing in securities.
    • The Board of Directors resolution authorizing the signatories to sign documents addressed to the DFM, with samples of their signatures.
    • Details of the applicant trading activity, including average number and value of trades per day (if deemed necessary by the DFM).
    • Signed DFM acknowledgment and undertaking form.
    • Provide a list of brokerage house employees and their personal DFM account numbers (NINs).
    • Provide complete information on Order Management System.
  6. IT Requirements:
    Communication Lines: 1 Mbps MPLS ports - Main and Backup to DFM main site 1 Mbps MPLS port - Zabeel DR-site.
    Hardware: 4 GB memory, dual processor and minimum speed of 3.0 GHz.
    PCs (X-Stream TWS) Minimum 2GB RAM with minimum processor speed 3.2 GHz.
    Market Data Feed (MDF) Application ability: Application's database should be able to handle at least 20 tickers / messages per second.

  7. Please note that there are fees associated with the above. For further information, please contact Market Operations Department: mc@dfm.ae.
All employees of brokerage firms and their relatives to the second degree must fill a form to obtain the approval of the Market Control. The brokerage company must also fill a form with the names of its employees who conduct personal trades.
The Market Operations department provides a "Brokers Ranking" report by trade value at the beginning of every month. This report is uploaded on the DFM website and can be viewed here.
The Market Operations department can extract daily reports about the trading movements of a brokerage company and their investors upon their request (submitted via letter or email.)These reports are subject to fees that depend on the amount of data required.
The Market Operations department provides a Daily Bulletin report at the end of each day after trading hours. These bulletins indicate daily trading activities and are available on the DFM website. You can view all bulletins here
The Trade Data Amendment process is implemented if the brokerage company made a deal/trade for the wrong investor, or a trade with incorrect details. The brokerage firm will need to fill out a special form that is submitted on the same day of the trading session and before 14:30. The form can still be submitted after 14:30 and until settlement date, however there will be charges determined by the Clearing and Settlement Department. 

ETFs

View the full list of equities as of the last rebalance here.

It will trade under the trading code UAETF and the iNAV will be posted live on the DFM Website (www.dfm.ae) and the UAETF Website (www.etf.ae)

The UAETF will track the S&P UAE BMI Liquid 20/35 Capped Index NTR (Bloomberg Code: SPUAECAN). It is a customized index that has been created and provided by the S&P for the UAE markets.

Retail and Institutional Investors can invest in the UAETF.

DFM Customer Service, T: 04 305 5555 or email: customerservice@dfm.ae, or visit DFM Client Affairs, Trading Floor, World Trade Centre, Dubai.

View more information at www.etf.ae

No the index that the UAETF tracks is a Net Total Return Index, which means that       the Fund reinvests the dividends and the corporate action on behalf of our clients.

The management fee is 1% annually inclusive of all fees paid to all service providers. This will be funded from the funds cash flow.

ETFs settle in two working days (T+2)

Yes, you have to have a DFM NIN to invest in DFM-listed ETFs. 

ETFs traded like stocks, ETFs offer the advantage of being liquid. They can be bought or sold any time during trading hours. They can also be purchased on margin, ETFs have low management fees.

ETFs are more accessible to small investors because investors can buy individual shares of an ETF, while many mutual funds have minimum investments.

ETFs provide easier access to alternative investments, creating a broader range of investment opportunities. There are ETFs that invest in commodities and foreign exchanges, and offer the ability to invest extensively in foreign and emerging markets.

Diversified like a fund but trades like a stock.

Yes, you trade through your DFM licensed-broker.

An ETF trades like a stock, and the trading code is UAETF.

Unlike a mutual fund that has its net-asset value (NAV) calculated at the end of each month, an ETF's price is calculated and changes throughout the day, fluctuating with supply and demand.

The fund is regulated by the Central Bank of Ireland. ADGM (Abu Dhabi Global Market) is the regulator for Afkar Capital Limited which is the distributor and promoter of the ETF. As the UAETF is a foreign fund, its local listing is regulated by the UAE Securities and Commodities Authority (SCA) and the DFM.

The UAETF is listed in AED (United Arab Emirates Dirhams)

Dubai Financial Market (DFM).

“UAETF” is the trading code for the “AFKAR S&P UAE UCITS ETF”, an ETF listed on the DFM (Dubai Financial Market). 

An exchange-traded fund (ETF) is an Investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as a stock index or bond index.