The UAE was among 17 countries setting new dividend records in 2024, as global payouts surged to an all-time high of $1.75 trillion. This marked a 6.6 percent increase from the previous year, reflecting strong corporate earnings and favorable market conditions.
A report by trading platform eToro highlighted that UAE-listed companies maintained robust dividend distributions, supported by gains in banking, energy, and real estate. These sectors played a crucial role in driving shareholder returns.
The banking sector, in particular, benefited from rising interest rates and economic expansion. Abu Dhabi Islamic Bank increased its dividend payout to 50 percent of its annual profit, underscoring the sector’s strong earnings growth.
Energy firms also made notable contributions, with ADNOC Gas declaring a $3.41 billion dividend. This was fueled by high oil prices and a commitment to consistent annual dividend growth of 5 percent. Meanwhile, real estate giant Emaar Properties doubled its dividend to 8.8 billion dirhams ($2.4 billion), driven by record property sales and increased demand in the housing market.
Saudi-listed firms also played a key role in the region’s dividend surge. Aramco distributed a total of $85.4 billion in 2024, despite a decline in net profit, while Al Rajhi Bank paid shareholders SR10.84 billion ($2.89 billion) through multiple dividend payouts.
For investors focused on income, dividends remain an essential strategy, offering a stable cash flow and the potential for compounding returns. However, market analysts caution that some of the record-breaking distributions in 2024, such as Emaar’s 100 percent payout of its share capital, may not be repeated annually due to market fluctuations.
Despite concerns about long-term sustainability, the UAE’s focus on shareholder returns highlights the resilience of its market. With strong corporate earnings, supportive government policies, and increasing investor interest, the country’s dividend growth outlook remains positive.
