3 Middle Eastern Dividend Stocks Yielding Up To 5.9%

The Middle Eastern stock markets have recently faced downward pressure, primarily due to declining oil prices and geopolitical tensions, with Saudi Arabia's benchmark index leading the decline. In this environment of heightened caution and fluctuating commodity prices, dividend stocks can offer a measure of stability and income potential for investors seeking reliable returns amidst broader market volatility.

Top 10 Dividend Stocks In The Middle East

Click here to see the full list of 51 stocks from our Top Middle Eastern Dividend Stocks screener.

Let's review some notable picks from our screened stocks.

Emirates Driving Company P.J.S.C (ADX:DRIVE)

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

Overview: Emirates Driving Company P.J.S.C., along with its subsidiaries, specializes in managing and developing motor vehicle driving training in the United Arab Emirates, with a market cap of AED3.70 billion.

Operations: Emirates Driving Company P.J.S.C. generates revenue primarily from Car and Other Related Services, amounting to AED770.49 million.

Dividend Yield: 5.8%

Emirates Driving Company P.J.S.C. has shown robust earnings growth, with net income rising to AED 332.97 million from AED 277.21 million year-over-year, supporting its dividend payments which have increased over the past decade. Despite a volatile dividend history, the current payout ratio of 64.7% and cash payout ratio of 66.8% suggest dividends are well-covered by earnings and cash flows. Trading at a favorable price-to-earnings ratio of 11.1x compared to the AE market average of 12.2x indicates good relative value for investors seeking dividends in this region.

• Unlock comprehensive insights into our analysis of Emirates Driving Company P.J.S.C stock in this dividend report.
• Our expertly prepared valuation report Emirates Driving Company P.J.S.C implies its share price may be lower than expected.

Dubai Islamic Bank P.J.S.C (DFM:DIB)

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

Overview: Dubai Islamic Bank P.J.S.C., along with its subsidiaries, operates in corporate, retail, and investment banking both within the United Arab Emirates and internationally, with a market cap of AED72.27 billion.

Operations: Dubai Islamic Bank P.J.S.C. generates revenue primarily through its Consumer Banking segment (AED4.63 billion), Corporate Banking (AED3.55 billion), Treasury operations (AED2.67 billion), and Real Estate Development activities (AED861.58 million).

Dividend Yield: 4.5%

Dubai Islamic Bank P.J.S.C. offers a dividend yield of 4.5%, below the top quartile in the AE market, but its payout ratio of 42.2% suggests dividends are well-covered by earnings and expected to remain so in three years (47.8%). Despite a history of volatility in dividend payments, recent earnings growth at 21.5% annually over five years supports future payouts. The bank's price-to-earnings ratio of 9.4x indicates potential value, though high bad loans (2.9%) and low allowance (90%) are concerns for sustainability.

• Click here to discover the nuances of Dubai Islamic Bank P.J.S.C with our detailed analytical dividend report.
• In light of our recent valuation report, it seems possible that Dubai Islamic Bank P.J.S.C is trading beyond its estimated value.

Banque Saudi Fransi (SASE:1050)

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

Overview: Banque Saudi Fransi offers banking and financial services to individuals and businesses both in the Kingdom of Saudi Arabia and internationally, with a market cap of SAR44.56 billion.

Operations: Banque Saudi Fransi's revenue is primarily derived from its Treasury (SAR2.44 billion), Retail Banking (SAR3.29 billion), Corporate Banking (SAR3.11 billion), and Investment Banking & Brokerage (SAR710.24 million) segments.

Dividend Yield: 5.9%

Banque Saudi Fransi's dividend yield of 5.94% ranks in the top 25% among Saudi Arabian payers, supported by a payout ratio of 54.2%, indicating earnings coverage and sustainability over three years (57.2%). Despite past volatility, dividends have grown over the last decade. Recent announcements include SAR 0.52 per share for H2 2025, contributing to total annual distributions of SAR 2.67 billion for SAR 1.07 per share in FY2025 amidst strong earnings growth with net income rising to SAR 5.35 billion.

• Click to explore a detailed breakdown of our findings in Banque Saudi Fransi's dividend report.
• Our comprehensive valuation report raises the possibility that Banque Saudi Fransi is priced lower than what may be justified by its financials.

Summing It All Up

• Navigate through the entire inventory of 51 Top Middle Eastern Dividend Stocks here.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
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Want To Explore Some Alternatives?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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• Find companies with promising cash flow potential yet trading below their fair value.

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.

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