Abu Dhabi Securities Exchange Distributes AED 120 Billion in Dividends Over 2 Years

Abu Dhabi Stock Exchange Emerges as Global Dividend Champion with Record $32.7 Billion Payout

Abu Dhabi's stock market is positioning itself as a premier destination for income-seeking investors worldwide, after listed companies distributed nearly 120 billion dirhams ($32.7 billion) in cash dividends across 2023 and 2024. This unprecedented dividend yield, combined with surging foreign investment that doubled to $3.7 billion in the first half of 2024, signals Abu Dhabi's transformation into a mature financial hub capable of competing with established markets like Singapore and Hong Kong for international capital.

The Dividend Advantage in a High-Rate World

Abdullah Salem Al Nuaimi, CEO of Abu Dhabi Securities Exchange (ADX) Group, emphasizes that today's international investors seek more than just returns—they want markets that combine clear vision, policy stability, and sustainable growth potential. This shift in investor priorities comes at a crucial time when geopolitical tensions and tightening monetary policies globally are driving capital toward markets with institutional credibility.

The record dividend distributions place Abu Dhabi among the world's most generous markets for income investors. Unlike growth-focused markets that promise future returns, Abu Dhabi delivers immediate cash returns while maintaining strong fundamentals—a rare combination in today's volatile investment landscape.

Economic Fundamentals Drive Investor Confidence

Robust Growth Projections

The UAE economy is projected to grow 4% in 2025 according to the IMF, with inflation remaining remarkably low at 1.9%. Abu Dhabi's real GDP reached 291 billion dirhams ($79.2 billion) in Q1 2025, growing 3.4% year-over-year. More significantly, the non-oil economy expanded 6.1% to 163.6 billion dirhams, now representing 56.2% of total output.

The Central Bank forecasts even stronger performance ahead: 4.4% growth in 2025 accelerating to 5.4% in 2026—among the highest growth rates globally. Non-oil activities are expected to maintain 4.5% growth in both 2025 and 2026, demonstrating successful economic diversification.

Credit Rating Strength

Fitch Ratings affirmed Abu Dhabi's sovereign credit rating at "AA" with a stable outlook, based on fiscal surpluses and robust sovereign reserves. This rating places Abu Dhabi in elite company globally, comparable to developed markets like France and Belgium, while offering superior growth prospects.

Market Performance Reflects Fundamentals

The strong economic backdrop translates directly into market performance. Total trading value in Abu Dhabi's market surged 33.5% in the first half of 2024 to 179.5 billion dirhams ($48.9 billion), while daily trading value increased 31.4% to 1.45 billion dirhams ($395 million).

This trading surge, combined with doubled foreign investment inflows, indicates expanding liquidity and market depth supported by a broadening investor base and increased institutional participation.

Product Diversification Strategy

Beyond Traditional Equities

Abu Dhabi's market now offers a comprehensive ecosystem including equities, fixed income instruments, derivatives, and exchange-traded funds. The market hosts 16 ETFs providing access to local, regional, and international markets—making it the most active ETF listing and trading venue in the region according to Bloomberg data.

Regional Integration Platform

The launch of the "Tabadol" platform, featuring nine member exchanges, enables direct access to multiple markets through a unified platform. This infrastructure positions Abu Dhabi as a regional financial hub facilitating cross-border economic integration—similar to how Singapore serves as a gateway to Southeast Asian markets.

Global Recognition and Rankings

International recognition validates Abu Dhabi's market development. The UAE ranked 10th globally as the largest destination for foreign direct investment inflows at $45.6 billion in 2024, according to UNCTAD. Analysis from Moody's, Reuters, and Financial Times confirms UAE markets are among the most future-ready in the region.

Positive ratings from global indices including MSCI, S&P Dow Jones, and FTSE Russell—reflecting improvements in liquidity and governance—have enhanced the market's growth story and accessibility to international investors.

Investment Implications

Abu Dhabi's combination of high dividend yields, economic diversification, and policy stability creates a compelling investment proposition. For income-focused investors, the market offers immediate returns through dividends while providing exposure to one of the world's fastest-growing economies.

The market's evolution from an oil-dependent exchange to a diversified financial platform mirrors successful transformations in markets like Norway and Canada, but with superior growth dynamics. As global investors increasingly prioritize yield and stability over pure growth, Abu Dhabi's model of delivering both positions it advantageously for continued capital inflows.

The unprecedented international investor interest reflects not just strong current performance, but confidence in Abu Dhabi's long-term vision of building a knowledge-based, globally integrated economy.