High dividend yields remain a key attraction for investors in the UAE’s stock market, especially in sectors demonstrating resilience and stable cash flows. Amid the ongoing global economic uncertainties, dividend-paying companies are often viewed as a reliable investment, offering consistent returns. Several Emirati companies stand out for their ability to deliver competitive yields, showcasing strong financial performance, strategic growth, and shareholder-focused policies.
As the UAE continues its economic diversification drive, companies across various industries, including real estate, insurance, manufacturing and retail, have maintained attractive dividend payouts. Below are the top Emirati companies offering the highest dividend yields.
Investcorp Capital
Dividend yield: 9.70%
PE Ratio: 11.28
Market cap: Dh4.36 billion
Investcorp Capital is an alternative investment company providing investors with exposure to corporate, real estate, credit, and strategic capital investments in the US, Europe, the Middle East (including Turkey), and Asia.
It funded more than $280 million across various asset classes over the last six months, according to a press release.
Listed on the Abu Dhabi Securities Exchange (ADX), the company has invested in real estate, infrastructure, and corporate finance. Its plan is to continue paying at least 8% dividends in semi-annual instalments.
In June 2024, it invested $70 million in two US student housing properties acquired for $160 million. In August, it funded three US industrial acquisitions with $98 million, bringing total transaction costs to about $300 million.
The company invested EUR 58 million in acquiring Stowe Family Law in the UK and provided $42 million to PKF O’Connor Davies in the US.
Mashreq Bank
Dividend yield: 8.61%
PE Ratio: 5.16
Market cap: Dh43.12 billion
Mashreq reported a pre-tax net profit of Dh6.5 billion for the first nine months of 2024, a 9% increase from the same period in 2023, despite Dh500 million in corporate income tax expenses. The profit growth was driven by a 13% year-on-year increase in net interest income and a 21% rise in non-interest income. Contributing factors included business growth, favourable margins, a stable interest rate environment, and low-risk costs. Operating profit rose 17% year-on-year, from Dh5.6 billion to Dh6.6 billion.
Return on Equity (ROE) reached 25.8% for the period.
Mashreq sold a 65% stake in its subsidiary IDFAA Payments (NeoPay) for $385 million. According to a bourse filing, the stake was acquired by Arcapita Group Holdings Limited and Dgpays SARL.
Palms Sports
Dividend yield: 8.46%
PE Ratio: 11.56
Market cap: Dh1.18 billion
Palms Sports, a subsidiary of International Holding Company, established in 2011, is a UAE-based leader in Jiu-Jitsu and martial arts training. In November, Palms Sports secured a two-year government contract worth Dh32 million. The company will provide 28 fitness and leadership development professionals to a government institution. The initiative focuses on physical training and leadership skill development.
Fujairah Building Industries
Dividend yield: 8.43%
PE Ratio: 21.29
Market cap: Dh484.12 million
Fujairah Building Industries, based in the UAE, specialises in the manufacturing and distributing building materials. Its operations are categorised into four main areas. The quarrying segment focuses on mining and selling quarry products, while the manufacturing segment handles the production and supply of various materials such as blocks, interlocks, kerbstones, ceramic tiles, rockwool insulation and marble and terrazzo tiles. This segment also includes contracting services for supplying and installing marble and terrazzo tiles. Another area of operation involves treasury and investment management functions alongside other miscellaneous activities.
RAK Ceramics
Dividend yield: 8.03%
PE Ratio: 10.52
Market cap: Dh2.47 billion
RAK Ceramics reported a 4.1% year-on-year decline in total revenue to Dh802.5 million for Q3 2024 and an 8.9% year-on-year decline to Dh2.36 billion for the first nine months of 2024. The decrease was attributed to geopolitical challenges, supply chain disruptions, and economic slowdowns that affected demand in core markets, except for the UAE.
Despite the revenue decline, gross profit margins improved. In Q3 2024, the margin rose by 250 basis points year-on-year to 41.2%, and in the first nine months of 2024, it increased by 140 basis points year-on-year to 40.0%, driven by a shift in product mix across most markets.
Recently, RAK Ceramics signed a framework agreement with Sobha Constructions, a subsidiary of Sobha Group. Under the agreement, RAK Ceramics will serve as the exclusive supplier of premium ceramics and porcelain tiles for Sobha’s upcoming projects.
Abu Dhabi National Insurance Company
Dividend yield: 7.38%
PE Ratio: 8.61
Market cap: Dh3.48 billion
Abu Dhabi National Insurance Company (ADNIC) reported a net profit before tax of Dh342.5 million for the first nine months of 2024, a 13.5% year-on-year increase. The financial results include the full consolidation of Allianz Saudi Fransi Cooperative Insurance Company (ASF) following ADNIC’s acquisition of a 51% stake in ASF.
For the period ending September 30, 2024, the consolidated total assets of both companies reached Dh12 billion, reflecting a 55.6% growth. Total shareholders’ equity grew by 16.1% to Dh3.4 billion.
Alliance Insurance
Dividend yield: 7.14%
PE Ratio: 10.06
Market cap: Dh420 million
Alliance Insurance, established in 1975 in the UAE, provides life and general insurance and is publicly listed on the Dubai Financial Market. The company has historically focused on life assurance, which has accounted for more than 60% of its net premiums in recent years.
Solidarity Bahrain, a subsidiary of Solidarity Group Holding and a leading Bahraini insurance provider, has acquired a 29% stake in Alliance Insurance. The acquisition, totalling Dh130.4 million for 289,850 shares, has received approvals from the Central Bank of the UAE and the Central Bank of Bahrain.
This transaction marks Solidarity Group’s entry into the UAE market, with plans to further increase its stake in Alliance Insurance, subject to regulatory approval.
Al Ain Ahlia Insurance Company
Dividend yield: 6.90%
PE Ratio: –
Market cap: Dh435 million
Al Ain Ahlia Insurance Company is a UAE-based public shareholding company offering general insurance and reinsurance products and services. Its operations are divided into two segments: fire and general accident and marine and aviation. The company underwrites various insurance classes, including motor, engineering, health, life, property, marine, energy, aviation and reinsurance services.
The company operates through its head office in Abu Dhabi, with additional branches in Al Ain, Dubai, and Sharjah and six motor insurance offices across the UAE.
Dubai Islamic Bank
Dividend yield: 6.62%
PE Ratio: 7.02
Market cap: Dh49.14 billion
Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE, reported a 23% increase in group pre-tax profit to Dh6 billion for the nine months ending September 30, 2024. Total income during the same period rose 16.8% year-on-year to Dh16.99 billion, compared to Dh4.54 billion in the previous year. Customer deposits grew by 6.7% to Dh237 billion, with savings account deposits contributing 38.1%, up from 36.6% at the start of the year.
DIB has recently initiated a bid to liquidate the Rasmala Trade Finance Fund, citing a loss of “trust and confidence” in the fund’s management. DIB owns nearly two-thirds of the fund’s shares on behalf of over 100 clients who invested approximately $315 million in 2017 and 2018. The fund, launched in 2013, suspended payouts in early 2020 due to the pandemic’s impact on its borrowers. Partial redemptions began in May 2021, with the remaining value to be distributed as assets are liquidated. A winding-up petition was filed in the Cayman Islands on September 24, 2024.
Union Coop
Dividend yield: 6.58%
PE Ratio: 13.04
Market cap: Dh3.98 billion
Dubai’s Union Coop has announced plans to transition into a public joint-stock company, aiming to maximise financial resources and increase competitive capabilities. The supermarket operators’ shares are traded in the Dubai Financial Market (DFM), but only UAE nationals are eligible to own them. Becoming a public joint-stock company will allow broader investor participation in Union Coop shares.
The company, which has a significant presence in Dubai’s supermarket sector and operates community malls, stated that it would support its strategic goals, including project development, geographic expansion, and improved services for shareholders, customers, and the community. The decision was made during a recent Board of Directors meeting.
Union Coop’s transition follows similar developments in the UAE retail sector, with Spinneys trading on the DFM and LuLu Retail recently joining the Abu Dhabi Securities Exchange (ADX). The shift is expected to provide Union Coop with increased exposure to a wider investor base and the potential for higher long-term returns.
