As geopolitical tensions and market fluctuations continue to impact the Middle Eastern stock markets, with Dubai's index recently hitting a near-three-month low and Abu Dhabi remaining flat, investors are increasingly looking for stability in dividend-paying stocks. In such uncertain times, a good dividend stock is one that not only offers consistent income but also demonstrates resilience amid broader market challenges.

Top 10 Dividend Stocks In The Middle East

Name	Dividend Yield	Dividend Rating
Emaar Properties PJSC (DFM:EMAAR)	7.46%	★★★★★☆
Arab National Bank (SASE:1080)	5.91%	★★★★★☆
Delek Group (TASE:DLEKG)	9.31%	★★★★★☆
National Bank of Ras Al-Khaimah (P.S.C.) (ADX:RAKBANK)	7.31%	★★★★★☆
Saudi National Bank (SASE:1180)	5.72%	★★★★★☆
Riyad Bank (SASE:1010)	5.92%	★★★★★☆
Saudi Awwal Bank (SASE:1060)	5.61%	★★★★★☆
Saudi Telecom (SASE:7010)	9.52%	★★★★★☆
Commercial Bank of Dubai PSC (DFM:CBD)	6.95%	★★★★★☆
Nuh Çimento Sanayi (IBSE:NUHCM)	3.37%	★★★★★☆

Let's uncover some gems from our specialized screener.

Air Arabia PJSC (DFM:AIRARABIA)

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Air Arabia PJSC, along with its subsidiaries, offers air travel services and has a market capitalization of AED16.05 billion.

Operations: Air Arabia PJSC generates revenue primarily from its airline segment, amounting to AED6.23 billion.

Dividend Yield: 7.3%

Air Arabia PJSC offers a compelling dividend profile, with a payout ratio of 79.5% and cash payout ratio of 69%, indicating dividends are well-covered by earnings and cash flows. Its dividend yield is in the top 25% of AE market payers, though past volatility raises sustainability concerns. Recent earnings show stable revenue growth but a slight dip in net income to AED 1.47 billion. The company announced an annual dividend increase to AED 0.25 per share, reflecting ongoing commitment to shareholder returns despite historical instability in payouts.

Emirates NBD Bank PJSC (DFM:EMIRATESNBD)

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Emirates NBD Bank PJSC, along with its subsidiaries, offers a range of corporate, institutional, retail, treasury, and Islamic banking services and has a market capitalization of AED126.02 billion.

Operations: Emirates NBD Bank PJSC generates revenue from several segments, including Retail Banking and Wealth Management (AED15.33 billion), Corporate and Institutional Banking (AED10.83 billion), Deniz Bank (AED10.55 billion), and Global Markets and Treasury (AED2.69 billion).

Dividend Yield: 5%

Emirates NBD Bank PJSC offers a reliable dividend yield of 5.01%, supported by a low payout ratio of 28.1%, ensuring dividends are well-covered by earnings. Although its yield is below the top quartile in the AE market, dividends have been stable and growing over the past decade, indicating sustainability. Recent earnings show net income growth to AED 23 billion, reinforcing financial stability despite high non-performing loans at 3.3%.

Bawan (SASE:1302)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Bawan Company manufactures and sells metal and steel works in the Kingdom of Saudi Arabia, with a market cap of SAR2.73 billion.

Operations: Bawan Company's revenue segments include Plastic at SAR365.98 million, Electrical at SAR571.18 million, and Metal and Wood at SAR2.12 billion.

Dividend Yield: 3.1%

Bawan's dividend payments are covered by earnings, with a payout ratio of 77.6%, and by cash flows, as indicated by an 87.5% cash payout ratio. However, the dividend yield of 3.1% is lower than the top quartile in the Saudi Arabian market. Despite an increase in dividends over the past decade, their track record remains volatile and unreliable due to fluctuations exceeding annual drops of over 20%. The company also carries a high debt level.

Next Steps

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.