Middle East Dividends Rise 5.5% To $44.6 Billion In Q2 As UAE Payouts Climb
The latest edition of the Janus Henderson Global Dividends & Buybacks Index showed that the Middle East accounted for about 5.9 per cent of global dividend payments, with payouts led by Saudi Arabia, the UAE and Kuwait. Regional headline dividend growth reached 6.9 per cent, outperforming the underlying figure due to calendar and timing effects.
Recommended For YouSaudi Arabia remained the region's dominant dividend market, distributing $28.4 billion, or 63.6 per cent of total Middle East payouts. The kingdom's underlying dividend growth stood at 2.4 per cent, with state oil giant Saudi Aramco accounting for almost half of all regional dividends. The company remained the world's largest dividend payer in the quarter and contributed 3.1 per cent of total dividends paid by the 1,500 companies tracked in the global index.
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The UAE ranked second, with companies distributing $13.6 billion in dividends during the quarter, representing 30.4 per cent of the regional total. Underlying growth reached 7.3 per cent, outpacing both Saudi Arabia and the regional average, highlighting the continued strength of UAE-listed companies and the country's growing appeal to income-focused investors.
Kuwait delivered the strongest growth in the region, with dividend payments surging 45 per cent year-on-year on an underlying basis to $1.8 billion, while Israel recorded dividend payouts of $900 million, growing 25.2 per cent.
The report comes as global dividends reached a record $757.8 billion in the second quarter, rising 7.3 per cent on an underlying basis, while share buybacks climbed 26.8 per cent to $572 billion. The increase was driven largely by technology and financial companies, reflecting strong profitability and continued shareholder returns despite higher spending on artificial intelligence infrastructure.
While dividends remain the preferred way for many companies to return capital to investors, buybacks are becoming increasingly important globally. The report estimated Middle East buyback activity at just $600 million in the quarter, significantly lower than dividends but still contributing to overall shareholder returns. The UAE accounted for around $200 million of regional buybacks, while Saudi Arabia contributed approximately $100 million.
According to Meshal AlFaras, Managing Director and Head of Middle East, Africa and Central Asia at Janus Henderson Investors, investor interest in regional income-generating assets continues to increase.
“The latest figures show the growing contribution Middle Eastern companies are making to global dividend income. Saudi Arabia remains the region's dominant dividend market, while the UAE continues to record healthy growth and Kuwait saw a particularly strong increase this quarter,” he said.“We believe Middle Eastern companies have an increasingly important role to play in a globally diversified income portfolio.”
Globally, Janus Henderson forecasts dividend growth of 5 to 6 per cent in 2026 and buyback growth of 7 to 8 per cent, supported by resilient corporate earnings, strong cash generation and continued capital returns from financial and technology companies. The asset manager said dividends remain well protected as companies generally prioritise maintaining regular shareholder distributions even during periods of economic uncertainty.
ALSO READ- UAE listed firms' Q2 profits surge 28.6% to Dh79.2 billion on banking, real estate strength Middle East dividends hit $29.2b in Q1 as payouts remain resilient
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