UAE Stocks Shine as Global Dividends Hit Historic $1.75 Trillion, Offering Stability and Returns
nabdalhadath – Ahmed Bin Abdulqader
Global dividends surged to a record $1.75 trillion in 2024, marking a 6.6% increase, reinforcing the growing significance of income-focused investing. Among the 17 countries that set new dividend payout records was the UAE, solidifying its position as a leading investment destination. UAE-listed stocks, known for offering stability alongside strong returns, continue to attract investors with their consistent focus on shareholder rewards.
As we enter 2025, UAE companies remain committed to rewarding their shareholders, with compelling opportunities arising across the banking, energy, and real estate sectors. This growth underscores the UAE’s ability to keep pace with global markets.
Josh Gilbert, Market Analyst at eToro, emphasized the remarkable performance of the UAE financial sector, stating, “The financial sector has been a standout performer, with UAE banks benefiting from higher interest rates and economic expansion. Abu Dhabi Islamic Bank (ADIB), for instance, raised its dividend payout to 50% of its annual profit, reflecting the sector’s robust earnings growth.”
Energy companies have also made a significant impact, with ADNOC Gas announcing a $3.41 billion dividend, driven by high oil prices and a commitment to 5% annual dividend growth. The real estate sector has equally delivered, with Emaar Properties doubling its dividend to AED 8.8 billion, backed by record property sales and strong market demand. These sectors, supported by solid fundamentals, are providing investors with an attractive mix of income and stability.
For income-focused investors, dividends are more than just an added benefit—they form a core part of a long-term investment strategy. Steady payouts create a reliable cash flow and provide the potential for compounding returns over time. The fact that UAE companies continue to prioritize shareholder returns highlights the resilience of the local market. However, the sustainability of such dividends remains a topic of discussion.
Josh Gilbert further explained, “While 2024 saw record dividend distributions, certain increases, such as Emaar’s 100% payout of its share capital, may not be repeated annually. These sectors are cyclical, and dividends could fluctuate with market conditions.”
Gilbert also pointed to examples from global markets, citing Australia’s leading miners like BHP and Rio Tinto, which recently slashed their payouts following record highs due to a drop-in iron ore price. Nevertheless, the underlying strength of UAE companies suggests their dividend payouts will remain competitive.
“The power of dividends is often underestimated by investors, particularly in the early stages of their investment journey. Compounding is key, which is why we stress the importance of starting early and staying consistent with investments,” added Gilbert. “While dividend-paying stocks may not see rapid growth due to payouts, they offer more stability and lower volatility, making them ideal for long-term income-focused investors.”
Looking ahead, the UAE’s dividend momentum remains strong, bolstered by corporate profitability, government policies, and continued investor demand. Whether seeking high yields or additional income from a diversified portfolio, the UAE presents a market well worth watching.
