Abu Dhabi Securities Exchange (ADX) announced that it has distributed more than AED 25 billion in cash dividends to 572,774 eligible investors on behalf of its listed companies. In comparison to the 2018 dividends, the 6.95% increase demonstrates the attractiveness of the investment environment in the Emirates and especially in Abu Dhabi.
The numbers speak for themselves: 398,220 UAE investors received their profits compared to 155,589 investors from other GCC nations, and 18,965 foreign investors, while cash dividends were distributed to 7442 institutional investors.
H.E. Khalifa Salem Al Mansouri, Acting Chief Executive of ADX said: “The increase in the size of cash dividends is a clear sign of how well ADX listed companies are performing. It also shows the attractiveness of our investment environment which is served by a supportive and efficient dual economic and legislative structure in the UAE.
H.E added: “We aim to continue to provide a stable and capable trading environment to offer real investment opportunities for foreign and local investors. ADX is contributing to establish a resilient financial market environment and enable financial markets to become the key financiers of Abu Dhabi economic sectors and projects. We are committed to offering a stable trading environment that will provide valuable returns on investments through cash dividends to stakeholders and foreign and local investors”.
His Excellency pointed out the importance of the commitment made by the listed companies to distribute their cash dividends to shareholders and investors, as this will bring liquidity to the markets. This will, in turn, enhance investors’ confidence in the operating performance of these companies.
In order to enhance its investors experience, ADX has recently partnered with First Abu Dhabi Bank, FAB, to distribute cash dividends to its registered investors electronically through the bank’s digital wallet, payit. The digital wallet will empower users to manage their stock exchange requirements through the “ADX Digital Wallet” powered by payit. With payit, ADX now provides another method of distributing cash dividends to investors through its new portfolio of services which follows the efforts to become more customer-centric. The platform achieves this new approach through a real- time digital payout model, where investors receive the dividends instantly within their wallet as soon as it is distributed.
In detail, the banking sector topped the list of the most active sectors in ADX with regards to cash dividend distribution with 52% of the total value of around AED 13.1 billion, followed by the telecommunication sector with 28% and a total value of around AED 7.1 billion. The energy sector came third with around 9% of the total value of about AED 2.31 billion. The insurance sector came fourth with about 6% and a total value of about AED 1.41 billion, it was followed by the services sector by about 2% and a total value of AED 420 million. The industrial sector came sixth by 1% with a total value of AED 260 million, followed by investments and financial services with 0.6% and a total value of about AED 160 million. Followed closely by the Private Companies with 0.6%, with a total value of around AED 150 million, while the consumer goods sector came with 0.4% and a total value of AED 110 million, and finally, the real estate sector with a 0.4% and a value of around AED 100 million.
It is worthy to note that ADX witnessed an increase in both institutional and foreign net investments starting the beginning of the year and up to end of August. In terms of net institutional investments, it has increased by nearly 93% from the beginning of the year and until the end of August of this year to reach AED 2.6 billion compared to about AED 1.4 billion in the same period in 2018.
Similarly, net foreign investment on ADX reached AED 3 billion since the beginning of the year and until the end of August of this year in comparison to AED 1.3 billion to the same period in 2018 which is an increase of 117%.
In addition, from the beginning of the year and until the end of August of this year, 333 institutional investors have entered ADX, including 267 foreign institutions, or 80% of the institutions that entered the Exchange in the said period. Also, the top 25 investment institutions in the world in terms of assets they manage are listed on the market and actively traded.
