Borouge Joins Abu Dhabi Dividend Benchmark

(MENAFN- The Arabian Post) Arabian Post Staff -Dubai

Borouge Plc has been included in the FTSE ADX Dividend Stars Index, a new benchmark launched by Abu Dhabi Securities Exchange in December 2025 that is designed to spotlight companies with a sustained record of dividend distributions, underlining the petrochemicals producer's position as a core income stock within the local market.

ADX said the FTSE ADX Dividend Stars Index is the first income-focused index of its kind in the region, created to meet growing demand from investors seeking predictable cash returns alongside exposure to liquid, large-cap equities. The index brings together 17 companies that collectively accounted for more than 70 per cent of total cash dividends paid by ADX-listed firms during 2025, highlighting its role as a barometer for dividend strength across the exchange.

Borouge's inclusion reflects its established dividend policy and scale within the Abu Dhabi market. The company, which produces polyolefins for infrastructure, energy, automotive and packaging applications, has been a consistent dividend payer since listing and is among the exchange's most actively traded stocks by both institutional and retail investors. Its presence in the index places it alongside leading financial, energy and utility companies that dominate cash returns on ADX.

For market participants, the creation of the FTSE ADX Dividend Stars Index represents a strategic shift in how income strategies can be implemented in the Gulf. Until now, dividend-focused investors relied largely on individual stock selection or broader market indices that did not explicitly weight for income stability. By concentrating on dividend history and payout consistency, the new benchmark offers a clearer framework for portfolio construction aimed at long-term yield.

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ADX officials have positioned the index as part of a broader effort to deepen the exchange's product suite and attract international capital. Abu Dhabi has steadily expanded its market infrastructure through the introduction of sectoral indices, derivatives, exchange-traded funds and sustainability-linked products. An income-focused index is intended to complement these offerings by appealing to pension funds, insurers and asset managers with mandates tied to regular distributions.

Borouge's operational and financial profile has supported its standing as a dividend anchor stock. The company benefits from integrated feedstock arrangements and proximity to key growth markets in Asia, the Middle East and Africa. Its production base in Ruwais, combined with access to Borouge 4 expansion capacity, has strengthened cash generation, even amid volatility in global petrochemical pricing cycles.

The company's dividend record has also been closely watched in the context of broader consolidation within the Abu Dhabi energy and industrial ecosystem. Strategic alignment with major shareholders has emphasised balance sheet resilience and shareholder returns, factors that are central to index eligibility criteria focused on payout sustainability rather than short-term yield spikes.

The FTSE ADX Dividend Stars Index methodology places weight on historical dividend payments, liquidity thresholds and free-float considerations, ensuring that constituents are both investable and representative of income generation on the exchange. By capturing more than two-thirds of all dividends paid on ADX during the year, the index underscores the concentration of cash returns among a relatively small group of large, established issuers.

Market analysts note that such concentration can work to the advantage of income investors by reducing volatility and enhancing predictability, while also posing questions about diversification within dividend strategies. The index structure addresses this by capping individual weights and maintaining sector balance, allowing exposure to financial services, energy, utilities and industrials without over-reliance on a single name.

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For Borouge, index inclusion may translate into incremental demand from passive and semi-passive investment products tracking the benchmark. Fund managers often use newly launched indices as the basis for exchange-traded funds or structured products, potentially increasing liquidity and reinforcing valuation support for constituent stocks.

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