Dubai Financial Market launches automated Dividend Distribution System

Dubai Financial MarketThe Dubai Financial Market (DFM) announced the launch of a streamlined Dividend Distribution System (DDS) that enables the distribution of dividends to investors’ bank account or iVESTOR card account without any human intervention.


The launch of the new system underlines DFM’s readiness for the dividend distribution of the financial year 2017, expected to commence within the next few weeks. Last month, Nasdaq Dubai launched futures trading on the exchange’s DFMGI index.


This smart and efficient process will be based on a comprehensive and continuously updated databank of investors’ details including; dividend entitlement and due amounts for each investor. Funds are automatically distributed once an investor selects his preferred way of receiving the dividends.


Maryam Fikri, Chief Operating Officer (COO) and Head of Clearing, Settlement and Depository Division (CSD), said: “We are delighted to launch the Dividend Distribution System (DDS) in a first step of its kind, which will further strengthen DFM’s leading position at the forefront of the most innovative exchanges.


Maryam Fikri, Chief Operating Officer (COO) and Head of Clearing, Settlement and Depository Division (CSD)
Maryam Fikri, Chief Operating Officer (COO) and Head of Clearing, Settlement and Depository Division (CSD)

“The DFM has pioneered numerous solutions that changed the way of service provision in the capital markets sector. In 2011, the exchange has introduced the dividend distribution service through iVESTOR card as well as transfer to bank accounts instead of the traditional way of cheques. The new system underlines our constant commitment to developing advanced solutions in line with market participants’ expectations.”


The dividend distribution relating to the financial year 2016 came to a total of AED 13.3 billion to 429,000 investors. The number of listed companies utilizing DFM’s dividends distribution service increased to 35 companies in 2017.


“Investors are eagerly looking to swiftly receive their dividends through the most efficient tools. Meanwhile, this system is of great value for listed companies as it releases them from many efforts and cost needed to distribute dividends to their shareholders. The DFM team has successfully developed this new system internally, without any interventions from third-party technology providers, as we have earmarked all the necessary technical and human resources in order to develop the system that eliminates many procedural steps. We are confident that this system will represent an invaluable addition to our momentous journey and further strengthen our ability to achieve the highest levels of customer satisfaction”, Fikri added.


Innovation in Dubai has been frequently served by Dubai Financial Market. It was in December 2017 that the exchange announced the Regulated Short Selling (RSS) Service, available on a selected list of eligible DFM-listed securities that will be reviewed every six months in accordance with international recommendations, including all ETFs and many securities listed in UAE indices.