Public joint-stock companies pay AED61.73bn to shareholders

ABU DHABI: Securities and Commodities Authority (SCA) revealed that public joint-stock companies in the United Arab Emirates distributed a substantial total of AED61.73 billion in cash dividends and bonus shares over the past year.

It underscores the robust financial health and profitability of these companies amid a dynamic economic landscape.

The distribution breakdown indicates that cash dividends predominantly comprised AED58 billion, representing 94 per cent of the total allocations, while AED3.72 billion, or 6 per cent, was allocated to bonus shares. Such distributions reflect the companies’ commitment to returning value to their shareholders, thereby enhancing investor confidence in the market.

Among the various sectors contributing to this distribution, the banking sector emerged as the leading dividend payer, disbursing AED18.35 billion in cash dividends. Following closely was the energy sector, which allocated AED11.36 billion.

The telecommunications and utilities sectors also made significant contributions, distributing approximately AED8.73 billion and AED8.72 billion, respectively.

The real estate sector, while ranking fifth, allocated AED5.54 billion, showcasing its continued importance within the economy.

Other sectors, including transportation, services, insurance, investment and financial services, industrial, and consumer goods, collectively contributed to the total, albeit in smaller amounts. Notably, non-listed companies accounted for a modest AED60 million in total distributions, indicating a relatively lesser engagement with shareholders compared to their publicly listed counterparts.

The reported cash dividends incorporated both those sanctioned by general assemblies and those derived from interim financial results for 2023.

The comprehensive approach to dividend distribution reflects prudent financial management and the intent to sustain shareholder value.

Furthermore, the banking sector not only led in cash dividends but also in bonus share distributions, amounting to AED3.439 billion, further solidifying its position as a cornerstone of the UAE’s financial landscape. The services sector followed with AED281.7 million, highlighting sector-specific strategies to reward investors.