Emirati stocks gain from profit and cash flow
The article reveals the strength of profits and cash flows of Emirati companies, supporting the continued performance of the market despite being affected by geopolitical developments and changing foreign investor flows. Corporate profits rose by 28.6% in the first half of 2026, reaching approximately 166.8 billion dirhams, with non-oil GDP growing by 4.8% in the first quarter, aided by rising oil prices. Expectations indicate the need to focus on companies with sustainable returns and dividend distributions, balancing attractive valuations with sustainable growth, as stocks are trading at an average of 12.1 times the expected earnings for 2026, with a return on equity approaching 29.2% and a dividend yield of about 4.1%. Overall, Emirati stocks remain attractive in the medium and long term, with limited expected movements in indices over the coming months, as investors increasingly rely on dividends and sustainable profit growth.
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