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Dubai Financial Market Investor Presentation Q1, 2013

Dubai Financial Market Investor Presentation Q1, 2013. i. CONTENTS. MENASA Region : Macroeconomics ………………………. 1 Dubai : Middle East’s Financial Hub ………………………. 5 UAE Capital Markets : DFM / ND / ADX ………………………. 9 Two Exchanges, One Market : DFM & ND …………………….... 14

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Dubai Financial Market Investor Presentation Q1, 2013

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  1. Dubai Financial Market Investor Presentation Q1, 2013

  2. i CONTENTS MENASA Region : Macroeconomics ………………………. 1 Dubai : Middle East’s Financial Hub ………………………. 5 UAE Capital Markets : DFM / ND / ADX ………………………. 9 Two Exchanges, One Market : DFM & ND …………………….... 14 Corporate Strategy : Going Forward …………………….... 24 www.dfm.ae

  3. THE REGION – MENASA / GCC/ UAE AN ECONOMIC POWERHOUSE

  4. 2 MENASA REGION : SOLID ECONOMIC FUNDAMENTALS -PROMISING GROWTH Oil Reserves and Production (% of Global Total) Population Projections 29% of Global Population MENASA region is emerging as a powerful economic bloc with tremendous growth potential, combining the sovereign wealth funds (SWFs) of the Mena region to the economic growth story of, say, India, hence, the economic paradigm shift towards this region from other emerging markets Iran GDP 2012 (USD Millions) FDI Projections 2006 - 2013 7% of global GDP Source: IMF, World Bank www.dfm.ae

  5. 3 GCC REGION : LIQUIDITY ON THE BACK OF HIGH OIL PRICES – KEY EMERGING MARKET The UAE, the second biggest Arab economy, is set to record 4% growth in GDP in 2013, led by a focus on adopting industrial policies that will drive sustainable development across the UAE. -IMF 2013 Forecast GCC – GDP Projections 2010 - 2013 GCC – Country Ratings 2011-12 Region was able to quickly recover from the global crisis on the back of strong fundamentals and high oil prices Iran GCC Ranking 2011-12 GCC – FDI Share by Country 2011-12 GCC region rated most promising region under WEF & World Bank rating GCC region accounted for US $ 70 Bn of FDI funds inflow 25th 30th 26th 39th 32nd 80th 36th 99th Source: IMF, World Bank www.dfm.ae

  6. 4 UAE: GROWTH PROSPECTS Oil / Gas as % of GDP (2012) • Recovery in oil prices • Strong growth in the non-hydrocarbon sector • UAE’s service driven economy benefitting from the global trade • USD 50 billion worth of infrastructural projects still under construction in UAE Key Contributors to Growth UAE Import/Export Projections (% Growth) Exports Imports Source: Dubai Chamber of Commerce www.dfm.ae

  7. DUBAI THE FINANCIAL HUB OF MIDDLE EAST

  8. 6 DUBAI: VISION & ECONOMIC STRENGTHS “Our vision is clear, our goals are obvious, our strengths are great, our will is strong and we are ready. We want Dubai to be a global center of excellence, creativity and leadership”. -HH Sh. Mohammed Ruler of Dubai Well diversified economy based on international trade, banking and finance, tourism, information technology and infrastructure. Dubai GDP Share Breakdown by Economic Sectors – 2011 Dubai’s core strengths remain fundamentally sound www.dfm.ae Source : Dubai Chamber of Commerce

  9. 7 DUBAI: RECENT EVENTS • Organizational restructuring of government departments & related entities • Successful debt restructuring across all sectors with zero defaults • GDP is projected to grow at 4% and above going forward, as per IMF, way above the average GDP growth of western counterparts Seems like the stars are aligning for Dubai once again While challenges remain, the Dubai economy is on a much sounder footing especially as much of the excesses and speculative elements of the economy have been weeded out. What Dubai is now left with is an unparalleled logistics, commercial, retail, communications and transportation infrastructure in the region - and ready for business in a region that is sitting in a fresh pile of cash thanks to high oil prices. www.dfm.ae

  10. 8 DUBAI: GROWTH PROSPECTS Globally fast growing industrieswith a strong position in Dubai Financial services Tourism Trade Oil and gas Professionalservices Globally fastergrowing sectors Communication Transportation and storage Future globalgrowth 2010– 2015 Manufacturing Average globalGDP growth Construction Electricity/Water Agriculture Globally slowergrowing sectors Governmentservices Very weak Average Strong Dubai’s strength by international standards Sectors qualified to be part of futuregrowth path www.dfm.ae Source : DSP 2015

  11. CAPITAL MARKETS UNITED ARAB EMIRATES

  12. 10 CAPITAL MARKETS: KEY EXCHANGES IN THE REGION Istanbul Stock Exchange Tunis Stock Exchange Algiers Stock Exchange Casablanca Stock Exchange Damascus Stock Exchange Beirut Stock Exchange Iraq Stock Exchange Palestine Stock Exchange Tehran Stock Exchange Amman Stock Exchange Kuwait Stock Exchange Libya Stock Exchange Egypt Stock Exchange Qatar Exchange Karachi Stock Exchange Tadawul Muscat Stock Market Sudan Stock Exchange Cash & Fixed Income Equity, Index & Commodity Futures Only UAE offer a wide array of trade exchanges/products in the entire MENA region www.dfm.ae

  13. 11 MARKET CAPITALIZATION LIQUIDITY REVIEW END-OF-PERIOD MARKET CAPITALIZATION (2001 –Q1, 2013) 12% growth in market cap in the 1st quarter of 2013 Q1 www.dfm.ae Source : DFM/ND Analytics

  14. 12 TRADE VALUES : DFM PERFORMANCE TRADED VALUE - DFM (2001 – Q1, 2013 ) The growth momentum continues in Q1, 2013 with trading volumes reaching 4.6 Bn US$ Q1 www.dfm.ae Source : DFM/ND Analytics

  15. 13 MARKET VELOCITY DFM PERFORMANCE VELOCITY (2001 – Q1, 2013) Q1 www.dfm.ae Source : DFM Analytics

  16. DFM / NASDAQ DUBAI TWO EXCHANGES, ONE MARKET

  17. 15 UAE MARKETS : REGULATIONS & OWNERSHIP Regulatory Authorities SCA (UAE Regulations) DFSA (International Regulations) Stock Exchanges Government of ABU DHABI 33.33% 19.9% 79.62% 100% 1% 66.67% Ownership Structure 19.38% Public Stake www.dfm.ae

  18. 16 DFM : GENERAL INDEX QUARTER PERFORMANCE INDEX PERFORMANCE -- 2012 -- Q1, 2013 12.7% Index growth in Q1,2013 as compared to 2012 1829.24 www.dfm.ae Source : Reuters / DFM / ND Analytics

  19. 17 DFM : TRADING PROFILES RETAIL VS. INSTITUTIONAL MIX Q1,2013 – TRADING ACTIVITY PATTERN AVERAGE RETAIL TRADING = 74.2% Trading Activity : Client type Mix AVERAGE INSTITUTIONAL TRADING = 25.8% TRADING ACTIVITY BY CATEGORY Q1,2013 has been a stabilizing quarter with institutional investor trading increasing to 25.8%, however concern still remains attributed to MSCI upgrade www.dfm.ae Source : Reuters / DFM / ND Analytics

  20. 18 DFM : TRADING ACTIVITY LOCAL VS. FOREIGN INVESTMENT UAE VS. NON UAE TRADING ACTIVITY NON UAE TRADING ACTIVITY www.dfm.ae Source : Reuters / DFM / ND Analytics

  21. 19 DFM : TRADE MATRICES SECTOR MIX Trade Activity – By Sector Q1, 2013 * Includes Materials / Utilities / Consumer Staples www.dfm.ae Source : Reuters / DFM / ND Analytics

  22. 20 DFM : OWNERSHIP SHARE OWNERSHIP RATIOS BY TYPE OF INVESTOR BY NATIONALITY Distribution of Share Ownership Q1, 2013 FOREIGN OWNERSHIP AS % OF MARKET CAPITALIZATION www.dfm.ae Source : Reuters / DFM / ND Analytics

  23. 21 DFM : MARKET ACTIVITY DFM SHARE PRICE AED DFM Share Price Movement Q1, 2013 AED 1.06 Trade Volume YTD 2010 www.dfm.ae Source : Reuters / DFM / ND Analytics

  24. 22 DFM : REVENUE MIX Revenue Breakdown 2008-Q1,2013 DFM is actively moving towards revenue diversification with 2012 witnessing 42% revenue from diversified portfolio www.dfm.ae Source : Reuters / DFM / ND Analytics

  25. 23 DFM : INVESTOR-CENTRIC ATTRACTIVE PLATFORM FOR LOCAL & INTERNATIONAL INVESTORS DFM : INVESTOR-CENTRIC ATTRACTIVE PLATFORM FOR LOCAL & INTERNATIONAL INVESTORS • Easy accessibility • No income and capital gains tax • Non-restricted repatriation of capital • Minimal foreign exchange risk • Foreign ownership allowed for most listed companies • Diverse base of listed companies • Local and international regulatory framework • Innovative trading capabilities www.dfm.ae

  26. CORPORATE STRATEGY DFM – NASDAQ DUBAI

  27. 25 STRATEGIC INITIATIVES ADDRESSING FUTURE GROWTH • Getting upgraded to MSCI Emerging Market Status • G30 Compliance and addressing the gaps • Organizational restructuring and monetization of financial services • Initiating investor –centric services to increase liquidity and trading activities post merger • IPO focus and listings www.dfm.ae

  28. 26 STRATEGIC INITIATIVES MSCI UPGRADE Key Features Key criteria's for Emerging market status DFM is ready and meets all eligibitly criteria's for MSCI upgrade to Emerging market status www.dfm.ae * Successful DVP implementation and introduction of SBL as part of G30 compliance

  29. 27 STRATEGIC INITIATIVES G-30 COMPLIANCE Key Features • CHANGED • Permitting Local Custodians ability to reject cash and securities settlement of sell trades back to executing Broker for settlement if Local Custodians do not receive (matched) settlement instructions from clients – Local Custodians now have full control of assets [unnecessary to operate dual accounts]. • Enhancing current rejection process for settlement of purchase trades; • Introduction of a Late Confirmation Period of T+4 • Securities fails handling mechanisms which comprises: • Optional buy-in [between T+2 and T+3] • Mandatory buy-in by DFM on T+4. • Cash close out against the Local Custodian client [if mandatory buy-in against selling Broker by DFM fails on T+4]. • Penalties for Late Confirmation. UNCHANGED T+2 settlement cycle; Pre-validation of sell orders will be maintained. This means a seller’s agent trading account with local custodian must have securities balances for pre-validation before a sell order can become a valid order. Delivery Vs. Payment : Implementation DvP methodology has been successfully implemented at DFM as of 2012 Reasons for adopting the changes Reduce risk in Local Brokers having unlimited access to the Local Custodian Client Agent Trading Account. Eliminate the requirement to use a dual account structure. Progression in meeting international best practices under a pre-validation of sale market infrastructure. Facilitate the achievement of Emerging Market status under the MSCI market classification. www.dfm.ae

  30. 28 STRATEGIC INITIATIVES ORGANIZATIONAL RESTRUCTURING New organizational structure EXCHANGES Key Growth Initiatives • Trading Enhancements • Margin Trading • Equity Swaps • Warrants • Enhanced Brokerage Services • iVESTOR Cards • Dividend Distribution • Market Data Feed • Web Advertizing • Online Subscription • IPO initiatives • e-Reports & e-Services • DVP • SBL • In-house IPO System www.dfm.ae

  31. 29 STRATEGIC INITIATIVES PIONEERING IPO STUDY DFM has commissioned Independent Research Consultants for intensive IPO study • The following initiatives have been taken so far: • The following initiatives are currently planned: • Publication of the ‘Guide to going public’ • Event hosted by DFM for the launch of the “Guide to going public” for top financial & legal advisors • IPO Market Study and meetings arranged with potential IPO candidates (E&Y) • DFM hosted high profile IPO information workshop for private, semi-government and family owned businesses • Approach the Free Zones in the Northern Emirates • Initiate talks with the DED & JAFZA • Initiate talks via the Dubai Chamber of Commerce • Nasdaq Dubai Initiative- Regional IPO Market Study and meetings to be arranged with potential IPO candidates. www.dfm.ae

  32. 30 STRATEGIC INITIATIVES ROBUST ENVIRONMENT FOR FUTURE LISTINGS www.dfm.ae

  33. ii CONTACTS : Racha Al Chamut Manager, Investor Relations P.O.Box: 9700, Dubai, UAE Tel: +971 4 305 5650 Fax: +971 4 331 4924 rchamut@dfm.ae Areej Al Saeed Office Manager Executive Chairman's Office P.O.Box: 9700, Dubai, UAE Tel: +971 4 305 5607 Fax: +971 4 331 4924 aalsaeed@dfm.ae www.dfm.ae

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