The UAE was among 17 countries that achieved new dividend payout records, cementing its position as a key investment destination for income-focused investors, according to a report by social trading and multi-asset investment company eToro.
Global dividends reached an unprecedented $1.75 trillion in 2024, marking a 6.6 percent increase from the previous year.
UAE-listed stocks continue to attract investors through their combination of stability and strong returns. Companies across the banking, energy, and real estate sectors demonstrated their commitment to shareholder rewards as 2025 began.
UAE financial sector ‘standout performer’ in global dividend growth
“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 percent of its annual profit, reflecting the sector’s robust earnings growth,” Josh Gilbert, Market Analyst at eToro said in a statement on Thursday.
In the energy sector, ADNOC Gas announced a $3.41 billion dividend, supported by high oil prices. The company has committed to 5 percent annual dividend growth.
Meanwhile, the real estate sector saw Emaar Properties double its dividend to AED8.8 billion, following record property sales and strong market demand.
For investors focused on income, dividends represent a core component of long-term investment strategy.
They provide reliable cash flow and potential for compounding returns over time. The UAE market has shown resilience through its companies’ prioritisation of shareholder returns.
“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 said.
He referenced examples from global markets, including Australian miners BHP and Rio Tinto, which reduced their payouts following record highs due to falling iron ore prices.
Despite this caution, UAE companies are expected to maintain competitive dividend payouts.
“While 2024 saw record dividend distributions, certain increases, such as Emaar’s 100 percent payout of its share capital, may not be repeated annually. These sectors are cyclical, and dividends could fluctuate with market conditions,” he said, adding “the UAE’s dividend momentum continues into 2025, supported by corporate profitability, government policies, and sustained investor demand. The market presents opportunities for those seeking high yields or additional income from diversified portfolios.”
The UAE’s dividend momentum continues into 2025, supported by corporate profitability, government policies, and sustained investor demand, the report said, adding the market presents opportunities for those seeking high yields or additional income from diversified portfolios.
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