Dubai, United Arab Emirates – October , 2025: UAE-listed companies continue to offer higher dividend yields than their counterparts in the US, UK and Europe, providing investors with attractive income opportunities supported by established sectors and predictable dividend policies, according to Nagham Hassan, MENA Market Analyst at etoro.
At the end of September 2026, the MSCI UAE Index, comprising 17 large and mid-sized companies, recorded a dividend yield of 4.72%, compared to 3.17% for the MSCI United Kingdom Index, 2.87% for the MSCI Europe Index and 1.11% for the MSCI USA Index. This places the UAE approximately 1.5 to 2 percentage points ahead of the UK and Europe, with a yield more than four times that of the US.
Dividend yield measures the annual cash dividend paid by a company relative to its share price. For example, a stock priced at AED 100 that pays AED 4 annually offers a dividend yield of 4%.
According to Hassan, the difference in yields is largely driven by the composition of the UAE equity market. Established businesses, particularly in banking, utilities, telecommunications and energy, typically generate substantial cash flows and distribute a significant portion of their earnings to shareholders. In contrast, high-growth technology companies tend to reinvest profits to support expansion.
More than 90% of the MSCI UAE Index is concentrated in banking, real estate, telecommunications and energy, while technology companies account for nearly 40% of the MSCI USA Index.
Another key factor is how companies return capital to shareholders. While US companies frequently favour share buybacks over dividend distributions, UAE-listed businesses have traditionally placed greater emphasis on direct cash payouts.
In the 12 months to September 2025, S&P 500 companies spent approximately $1.02 trillion on share buybacks, compared to $665 billion on dividends. Share buybacks can benefit shareholders but are not reflected in dividend yield calculations.
In comparison, share buybacks remain relatively limited in the UAE. Borouge, for example, repurchased approximately 1.1% of its shares over an 18-month period, while its dividend distributions over the preceding year represented nearly 7% of its share price.
Beyond higher yields, UAE-listed companies also offer investors greater visibility through established dividend policies. ADNOC Distribution has committed to an annual dividend of at least 20.57 fils per share from 2024 through 2028, while Alpha Dhabi has outlined annual dividend distributions starting at AED 2 billion, increasing by 5% each year through 2027.
These policies provide shareholders with clearer expectations regarding future cash distributions, supporting the UAE market’s appeal to income-focused investors.
Hassan noted that while the UAE’s relatively high dividend yields present opportunities for investors seeking regular income, dividends should be assessed alongside broader market performance and investment risks.
Dividend payments remain subject to corporate decisions and may be reduced depending on business conditions. Share price movements also play an important role in determining total investment returns, as a 10% decline in a stock’s value could offset two years of income from a 5% annual dividend yield.
Overall, the UAE’s combination of higher dividend yields, established cash-generating sectors and transparent payout policies continues to distinguish its equity market from major international counterparts.
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