It will be refunded back to your iVestor Card.
An identification number issued for the Investor by Dubai CSD at DFM. This is required for an Investor to hold shares that are traded on DFM, including subscribing to an IPO of a company that will list on DFM.
You can apply through the following channels:
There is no fee for obtaining a NIN.
Yes, you can. All DFM investor services can be accessed through a licensed Trading Member of DFM.
Yes, you can through an official Power of Attorney (POA). If the POA is issued outside of the UAE, it must be certified by the UAE Embassy of that country or the UAE Ministry of Foreign Affairs.
Yes, through the Guardian or Legal Representative.
No, it is not required. Your shares will be registered under your DFM Investor Number (NIN). However, to immediately trade with your allocated shares, you will need a registered account with a Trading Member. You can find the list of licensed DFM Trading Members at www.dfm.ae.
A fee of AED 2.00 per transfer is charged.
This depends on your bank, as each bank has its own limit policy.
Dividends Services (Bank Account)
Dividends Services (iVESTOR)
For lost cards, you can request an iVESTOR card replacement through DFM eServices at www.dfm.ae or DFM mobile app.
Can I cancel my iVESTOR card?
You can cancel your iVESTOR card by completing the Cash Dividends Services Form and choosing the alternative payment method which is Bank Transfer.
Submit your request through DFM mobile App or DFM eServices at www.dfm.ae.
Can I withdraw cash internationally?
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.
Yes, via DFM App and DFM eServices.
Can I transfer my shares from my account to another individual’s account?
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 and above.
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 Central Securities Depository (Dubai CSD) are as follows: An official letter or a depositing and withdrawing form should be sent by the investor completed with the following details:
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:
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 member. The Dubai CSD 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.
Investor Number Services
Is it required personal presence to obtain Investor Number in Dubai Financial Market?
No, personal presence is not required to obtain an Investor number. Investors may apply on the DFM App.
If I apply for an Investor Number (NIN), when will I receive it?
Investor Numbers (NIN) can be issued immediately once the request is submitted.
As a non-UAE resident, can I open an Investor Number (NIN)?
Yes. The Dubai Central Securities Depository (Dubai CSD) CSD 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 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.
Yes. Investors below the age of 18 are considered minors, and therefore the guardian must request the Investor Number (NIN) on behalf of the minor. Click here to view the steps.
You can apply by providing a duly authenticated Power of Attorney.
What are the requirements to become a custodian member in Dubai CSD?
The following are the requirements to become a custodian member at Dubai CSD:
Is it necessary to submit to DFM the annual custody renewal license issued by the SCA?
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:
Note: the custodian member 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, custodian members should ensure timely payment of the annual fees for each user and show proof of payment to Dubai 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-service with a full description of the error type as well as provide Dubai 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 Dubai CSD upon request.
In case the existing client wishes to move out of custody and holds inventory positions, the custodians should send a transfer request through e service portal and attach the account opening request which should be prepared by the client or their trading member. The requirements of the transfer request are as follows:Complete Custodian Members Transfers form by the custodian member. Global custodian member letter / swift instruction of the same (if any). Transfer fees (refer to Services Catalogue & Fees).
DFM Shari'a Index
The DFM Shari’a Index (DFMSI) aims to replicate the performance of the Dubai Financial Market Shari’a-compliant listed companies. The importance of the DFMSI stems from the following:
All classes of Shari’a-compliant ordinary shares listed on DFM are eligible for inclusion in the DFMSI.
Investors and mutual funds interested in trading in Shari’a-compliant companies listed on the DFM, data providers, market participants including listed companies
Yes. The DFM Shari’a Index (DFMSI) includes historical data from 31st December 2009.
Trading Rights Issues
Hedging Against Investment and Finance Risks
Yes, because protection of wealth is one of the major Shari’a objectives, and if the duty to protect wealth entails hedging, then hedging itself becomes a duty, because it is an established principle in the Shari’a that what is a prerequisite to a duty becomes a duty itself.
Capital protection is to seek to protect it from loss without guaranteeing to pay it back, a pursuit which may not deliver the desired results: for example, guarding an asset; despite its protection it may be stolen or impaired.
Guaranteeing the capital on the other hand is to bear the losses, if any, instead of having them borne by the guarantee seeker. It relates to the outcome without considering the reasons or monitoring the feasibility of the means and methods taken by the guarantor or the guarantee seeker.
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:
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.
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.
If the shares were purchased for trading purpose then 2.5% of their market value is payable per annum (Hijri year) as Zakat. If, however, they were purchased with the aim of retaining them (as long-term investment) then the Zakat shall be the same over the net value of the zakatable assets, if this value was calculated and made available to shareholders by the company. Alternatively, shareholders can choose to annually pay 10% of their net profit, whether the profit was actually distributed or not.
Refer to the concerned listed company regarding the percentage to be excluded from the dividends that have been decided to be distributed.
Yes it is permitted provided the following Shari'a parameters are adhered to:
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.
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).
Yes, Shari’a compliant- shares may be bought and sold on the same day.
The sale on the margin means that the broker lends the client an amount above the margin, i.e. the amount paid by the client, and the broker buys the shares on behalf of the client on condition that the client pays the loan amount within a specified period. If not, the broker is authorized by the client to sell the shares he bought at the market price if their price has reached the margin. From the selling price the broker recovers his debt and the balance, if any, is returned to the client. Shari’a permits the loan as long as it is free from explicit or hidden interest, and the commission taken by the broker in case of buying on the margin is considered hidden interest if it is above the commission normally charged for brokerage without lending. If the commission remains the same, then the transaction is valid because it involves no interest.
It is not permissible, since in this case the contract is considered void according to Shari’a in view of the initial agreement to pay interest. If, however, there is no agreement to pay interest, then the contract is permissible.
As part of Dubai Clear’s deployment of its “Delivery Versus Payment” (DVP) settlement mechanism, the Dubai Clear addressed the need to operate dual accounts to mitigate unlimited access by local Clearing Members to the trading accounts. To achieve full control by local Settlement Agents over client accounts, Dubai Clear is implementing processes to provide local Settlement Agents the ability to reject buy and / or sell trades for settlement if matched settlement confirmations are not received from clients.
The DVP (Delivery Versus Payment) procedures are meant to ensure that investors using the services of a Settlement Agent 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 Settlement Agent to settle the trade.
Any investor using a Local Settlement Agent to settle their trades executed through a Local Clearing Member will be impacted by the changes.
The enhanced DVP processes are only applicable to clients using a Local Settlement Agent for settlement and not to retail investors settling trades using their direct accounts with Local Clearing Members.
No. There are no changes to the way trading on the normal Dubai Clear is conducted. There is an alternative option for investors to sell securities via the Dubai Clear buy-in board. Investors will need to inform their Local Clearing Member if they intend to sell securities via the buy-in board.
The Dubai Clear changes are summarized as follows:
No, if the Local Member does not trade for clients using Settlement Agent for settlement, the impact to the Local Trading Member will be limited to the new buy-in feature introduced by DFM, where the Local Members can participate in a buy-in by placing offers to any buy-in bids under an open status. Only Local Members which trade for clients using a Local Settlement Agent for settlement will have to follow the DVP process.
Yes. A Local Settlement Agent can reject purchase / sell trades if no matched settlement instructions are received from clients.
When a Local Settlement Agent rejects a purchase trade, the buying Clearing Member will pay Dubai Clear the cash settlement obligations and Dubai Clear will credit the purchased securities to the designated rejection account under the control of the Local Clearing Member.
No, the enhanced processes merely allow clients using Local Settlement Agents for settlement more time to provide settlement instructions to the Local Settlement Agent. This Late Confirmation Period is subject to agreement by the executing Clearing Member and is subject to penalties.
Yes. However, the ‘Late Confirmation Window’ for purchase trades is subject to the client / Clearing Member agreement on due dates for late payments. The proposed ‘Late Confirmation Window’ for purchase trades is merely a facility provided by Dubai Clear to facilitate any subsequent transfers arising from a settlement agreement between the client and the Clearing Member. 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 Clearing Member. 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. 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 Clearing Member and provided the local Clearing Member has not sold the purchase securities. The Local Settlement Agent will contact the Local Clearing Member to arrange for the transfer of securities back to the client’s Agent Trading account subject to payment by the Local Settlement Agent to the Local Clearing Member first.
Once a sell trade is rejected by the Local Settlement Agent, Dubai Clear will determine if the Local Clearing Member has sufficient balance of securities in the designated rejection account. If there is sufficient balance in this account, Dubai Clear will debit this account, settle the rejected sell trade and pay the Local Clearing Member the cash proceeds on T+2. If the Local Clearing Member does not have sufficient balance in the designated rejection account, Dubai Clear will create a negative available balance under this account and will retain the cash proceeds until final resolution of the failed trade. Dubai Clear 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:
Yes. The client can send request settlement by providing matched settlement instructions within the Late Confirmation Period, therefore beginning T+2 and ending on T+4, provided the Local Clearing Member has not settled the sale rejection.
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 Dubai Clear to facilitate trade settlement for clients using a Local Settlement Agent for the settlement of trades. It is a decision of the Local Clearing Member to determine whether or not a Late Confirmation Period should be offered to its client using a Local Settlement Agent for settlement.
Yes. Acceptance of the Late Confirmation by the Local Clearing Member is on a discretionary basis and provided that the rejected trades have not already been settled by the Local Clearing Member in the market either directly or via the buy in mechanism.
If a client does not provide settlement instructions within the Late Confirmation deadline to settle the purchase trade, the Local Clearing Member will dispose of the securities underlying the rejected purchase trade latest by 2 market days after the end of the Late Confirmation Period.
No penalties for any reversal of rejections executed by Dubai Clear on T+2.
Yes, a penalty will be applied for a minimum of AED 500 or the total order values of each sell/buy rejection transaction X 0.05%.
Yes, a penalty will be applied for a minimum of AED 2500 or the total order values of each sell/buy rejection transaction X 0.25%.
The Transfer Fees will be levied for two situations:
The features of the buy-in mechanism are as follows:
Where the buy-in against the Local Clearing Member fails, a cash closeout against the Local Settlement Agent client will be invoked by Dubai Clear.
A buy-in may be used only by a Selling Clearing Member when there is a negative balance in the designated rejection account.
Please read the Dubai Clear Collateral Policy to know about the procedures of increasing the Collateral.
The Clearing Member must coordinate with the Issuer bank of the Bank Guarantee to send an official letter addressed to the Dubai Clear requesting Dubai Clear to issue a No Objection Letter for the reduction of the Bank Guarantee amount.
The Clearing Member must coordinate with the Issuer bank of the Bank Guarantee to send an official letter addressed to the Dubai Clear requesting Dubai Clear to cancel the requested bank guarantee.
If the Clearing Member desires to change settlement bank and deal with other Dubai Clear settlement banks, they must follow the steps below:
No, unless the bank guarantee has no auto-renewal feature.
Please refer to Special Deal Procedures for the full details.
Each year, the external auditor is appointed by the shareholders during the Annual General Meeting. Price Waterhouse Coopers (PWC) was appointed for 2022.
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. Requirements:
An exchange-traded fund (ETF) is an Investment fund traded on stock exchanges, much like stocks. An ETF Unit 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.
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 units 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.
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.
Yes, ETF Units trade like Shares.
Yes, you can trade through your DFM licensed-broker.
ETFs settle in two working days (T+2)
Yes, you have to have a DFM NIN to invest in DFM-listed ETFs.
No, there is no minimum and maximum on the number of units that can be bought.
DFM Customer Service, T: 04 305 5555 or email: firstname.lastname@example.org
Equities and Futures are identified separately. Futures will have the word “FUT” to identify it as the Futures ticker. For example, Futures on Emaar Properties for the September 2020 expiry will be “EMAAR FUT – September 2020”.
We make trading Futures easy for you. No matter your nationality or which country you are based in, you can apply to trade DFM Futures.
Investors should continue to educate themselves about the opportunities and risks associated with futures trading. DFM Investors can access videos and more on the DFM Equity Futures resource center.
A market maker provides liquidity to the market. Market makers are financial institutions that simultaneously offer both Bid and Ask prices for the contract.
They provide investors with the opportunity to enter and exit positions in the DFM traded Futures. Currently (June 2023) the DFM Futures’ market has three market makers quoting a minimum of 5 contracts on each buy ad sell-side of the market. This guarantees a minimum liquidity to investors.
A Long Position means that you have bought one or more futures contracts resulting in a net position which profits if the market goes up. A Short Position means that you have a position where you have net sold more contracts which profits if the market drops.
After the close of each trading day and if the market in your future contract has moved, you either have a gain or loss in your account. Variation Margin is the process of crediting or debiting this profit or loss from your account. For example, if you bought a stock at AED 2, until you sell the stock all your gains and losses are unrealized. But if you bought the futures contract at AED 2, and the price went up by the end of the day, you will have a cash gain realized in your account. If the price went down, you will have a cash loss in your account.
There are no overnight finance charged to your account, a distinct difference with Contracts for Difference (CFDs)
All investors who have a NIN (National Identification Number) with DFM are eligible to trade in DFMGI Futures and all other derivatives products i.e. Single Stock Futures SSF and DME Micro Oman Crude Oil futures OMOIL.
By taking Long or Short position in a future contract, the investor needs to deposit a minimum amount of acceptable collateral as an Initial Margin with the member. Initial Margin rates for DFMGI Futures is 5% as prescribed by Dubai Clear. However, members have the right to ask for a higher Initial Margin depending on the risk profile of the client. When the client closes the position (sell to close Long position and buy to close short position), the balance of the Initial Margin is released.
On September 1, 2023, an investor buys a 1 contract of DFMGI Futures at a price of AED 3,500 September 2023 expiry.
Reception - Mezzanine Floor
World Trade Centre (Rashid Tower)
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P.O. Box: 9700
Dubai, United Arab Emirates
Makani No: 27608 91214