By: Mahmoud Gamal
Dubai – Mubasher: UAE state-owned banks are set to pay around AED 6.24 billion ($1.7 billion) in cash dividends for 2017, according to a survey conducted by Mubasher.
The banks listed on the UAE's twin bourses approved a good amount of dividends compared to some banks listed on foreign markets, commented senior financial analyst at MenaCorp Issam Kassabieh, noting that these dividends come despite major difficulties facing the banking sector domestically and globally.
Shareholders at Abu Dhabi-listed government banks nodded to AED 12.63 billion in cash dividends for 2017, compared to around AED 10.4 billion in 2016, data by Mubasher showed.
The generous dividends agreed upon by several banks will attract long-term investors, Kassabieh added.
Meanwhile, banks owned by the Dubai government and a listed on the emirate's market have okayed the distribution of AED 1.97 billion in cash dividends for last year.
Meanwhile, Dubai banks, in general, will distribute a combined value of AED 3.026 billion in dividends for 2017, the survey revealed.
Banks in the Emirate of Dubai opted this year for cash dividends to boost the UAE market’s liquidity, the analyst told Mubasher, concluding that dividends are expected to increase in 2018 as the execution of Expo 2020 projects continues at a rapid pace.
Translated by: Muhammad Khalid
