Dubai Financial Market (DFM)
~50 min read
Lesson
DFM specifics
The Dubai Financial Market (DFM) was established in 2000 and is supervised by the SCA. It is the world's first Shariah-compliant exchange and runs distinct session phases each trading day.
Establishment & Regulator
Definition · DFM facts you must memorise.
Explanation
DFM was established in 2000. It is regulated by the SCA. It primarily lists Dubai-incorporated companies. As of 2007 it became the first fully Shariah-compliant stock exchange in the world.
Why it matters
Quick recall questions love these dates and labels.
Real-world example
If asked 'which UAE exchange is Shariah-compliant?', the answer is the DFM.
Key exam points
- ●DFM established in 2000
- ●Regulated by the SCA
- ●First Shariah-compliant exchange globally (2007)
- ●Primarily lists Dubai companies
Common mistakes
- ●Saying the DFM regulates itself — it is regulated by SCA
Session Phases & Settlement Failures
Definition · How a DFM trading day unfolds.
Explanation
Each day starts with a Pre-Opening session where orders are collected to build the opening price (no trades execute). Then the main Continuous Trading session runs. Settlement-failure rules mirror the broader UAE framework: forced sell-out by T+1, loss to the client, profit to the Investor Protection Fund.
Why it matters
Pre-Opening vs Trading is a frequent multiple-choice trap.
Real-world example
Orders entered at 09:30 (pre-opening) do not execute — they help set the opening price at 10:00.
Key exam points
- ●Pre-Opening = price discovery, NO execution
- ●Continuous Trading = orders match continuously
- ●Settlement-failure: sell-out by T+1; profit to IPF
Common mistakes
- ●Believing pre-opening trades fill instantly
Important
DFM is regulated by the SCA. It is the world's first fully Shariah-compliant exchange.
Exam Tip
Pre-Opening sets the opening price — it does NOT execute trades.
Review & Memorize
Quick facts
Exam Numbers
DFM Established
2000
Shariah Since
2007
Sell-Out
T+1
What You Must Remember
Top exam facts
- ●DFM established 2000; SCA-regulated
- ●First Shariah-compliant exchange (2007)
- ●Pre-Opening = price discovery only
- ●Settlement failures mirror national rules
Key definitions
- ●Pre-Opening — Order collection phase that sets the opening price
- ●Continuous Trading — Main session where orders match continuously
Key numbers
- ●DFM Established: 2000
- ●Shariah Compliant: 2007
Likely exam questions
- ●When was the DFM established?
- ●Who regulates the DFM?
- ●What happens during pre-opening?
- ●Is the DFM Shariah-compliant?