ABU DHABI 12 August 2018: Abu Dhabi Securities Exchange (ADX) has announced the distribution of more than Dh23.4 billion in cash dividends to around 406,000 investors on behalf of listed companies in 2018.
The cash dividends paid out by listed companies increased around 5.5% compared Dh22.2 billion in the year 2017.
ADX holds a market leading position as a distributor of cash dividends to investors. Stock listed on ADX account for 5.8% of cash dividends paid out globally. This strengthens the Exchange’s position as a preferred listing destination and the high levels of competitiveness.
ADX has also witnessed a rise in the net institutional investments by 4.5% in the first half of 2018, reaching Dh947 million, compared to 908 million for the same period in 2017. Additionally, the number of institutional investors registering in ADX amounted to 271 in the first half of 2018, compared to 256 in the same period of 2017, an approximate increase of 6%. This brings the total number of institutional investors in ADX to more than 7900 with 5900 being foreign institutions and 2000 local institutions.
Chief Executive of ADX, Rashed Al Blooshi emphasized: “These cash dividends accentuate the robust performance of ADX’s listed companies, the safe and attractive investment environment it provides, as well as the stable economic and legislative structure seen in Abu Dhabi and the UAE in general.”
In 2018, ADX distributed Dh23.4 billion in cash dividends to 406,000 eligible shareholders in listed companies with 222,000 of those investors being UAE nationals. Whereas the remaining recipients of cash dividends, 184,000, being foreign nationals. ADX also distributed cash dividend to 4,500 domestic and foreign institutional investors.
Distribution
- The Banking sector accounted for the highest value of cash dividends paid out, with 52.6% and a total value of Dh12.3 billion followed by the
- Telecommunication sector with 30.5 % of total dividends paid out and a total value of Dh7.1 billion
- Energy sector with 4.6 % of total dividends paid out and a value of Dh1.1 billion
- Real Estate sector trailed with around 4.6% of total dividends paid out and a total value of around Dh1.1 billion
- Industrial sector ranked fifth with 2.2% of total dividends paid out and a total value of around Dh529 million
- Investment & Financial Services sector came in sixth place with 1.7% of total dividends paid out and a total value of Dh393 million
- Services sector followed with almost 1.7% of total dividends paid out and a total value of around Dh393 million
- Insurance sector ranked eighth with almost 1.6% of total dividends paid out and a total value of around Dh368 million
- Consumer staples sector with 0.5% of total dividends paid out and a total value of Dh114 million.
ADX maintains its efforts in ensuring sustainable development in the Emirate of Abu Dhabi, and is committed to achieving Abu Dhabi’s plan to develop the financial services sector, attract investments and enhance the environment for doing business in the Emirate. ADX deploys the latest and most secure technology in the distribution of cash dividends. These systems are designed to encourage investors to reinvest at least part of their dividend payment back into the market, through increasing investor confidence.
The market capitalization of listed companies increased by 6.5% to reach Dh485 billion by the end of the first half of 2018, compared to the same period in 2017. The market value of shares owned by UAE investors by the end of the first half of 2018 reached Dh415 billion compared to Dh383 billion in the same period of 2017, an increase of 8.5%. The market value of shares owned by foreign investors reached Dh46 billion by the end of the first half of 2018 compared to Dh43 billion during the same period of 2017, which is an increase of 7.5%.
ADX made it mandatory for all listed companies to deposit the cash dividends to be distributed to shareholders in its bank account within five working days, following the decision of the General Assembly or Board of Directors, and ADX’s conditions and procedures