High-Yield Dividend Opportunities in the Middle East: Navigating Volatility with Avrupakent Gayrimenkul, Osmanli Yatirim, and Arab National Bank

In the Middle East's dynamic and often unpredictable financial landscape, income-focused investors are increasingly drawn to high-yield dividend stocks that balance attractive returns with resilience. With oil price swings, geopolitical tensions, and shifting monetary policies creating turbulence, the ability to identify companies with sustainable payouts and strategic adaptability is critical. This article examines three standout names—Avrupakent Gayrimenkul (AVPGY), Osmanli Yatirim (OSMEN.IS), and Arab National Bank (ANB)—to assess their dividend sustainability, earnings resilience, and positioning in a volatile environment.

Avrupakent Gayrimenkul: A REIT with a Fortress Balance Sheet

Avrupakent Gayrimenkul Yatırım Ortaklığı A.Ş. (AVPGY) stands out as a high-yield real estate investment trust (REIT) with a 7.71% dividend yield, significantly above the Turkish market average. Its 16% payout ratio—well below the 50% minimum required by its articles of association—demonstrates robust earnings coverage. The company's debt-free balance sheet (debt-to-equity ratio of 0%) and high occupancy rates in its prestigious real estate portfolio further underscore its financial stability.

AVPGY's strategic positioning is equally compelling. With a three-installment dividend plan for 2024 and a scheduled ex-dividend date of 27 October 2025, the company has demonstrated a commitment to consistent payouts. Its TRY43.8B in total assets and TRY2.5B EBIT provide a strong foundation for sustaining dividends even amid macroeconomic headwinds. For income-focused investors, AVPGY represents a rare combination of high yield and structural resilience.

Osmanli Yatirim: Navigating Turkey's Volatile Capital Markets

Osmanli Yatirim Menkul Degerler A.S. (OSMEN.IS) operates in Turkey's capital markets, offering asset management, brokerage services, and investment consultancy. While its 3.4% dividend yield is modest compared to AVPGY, its 57.2% payout ratio based on earnings and 21.3% cash payout ratio suggest a well-supported dividend. However, the company's Q2 2025 net profit of TRY833,125—a sharp decline from TRY2.41B in Q2 2024—raises concerns about earnings resilience.

The firm's strategic positioning is key to its long-term appeal. As Turkey's lira depreciates and oil prices fluctuate, Osmanli Yatirim is advising clients to diversify into gold, real estate, and hedged currency positions. Its TRY7.76B in brokerage revenue and services like forward contracts and lira-denominated debt provide tools to mitigate currency risk. While its earnings volatility is a red flag, the company's adaptability to macroeconomic shifts and its role in facilitating hedging strategies make it a speculative but potentially rewarding addition to a diversified portfolio.

Arab National Bank: A Saudi Banking Sector Powerhouse

Arab National Bank (ANB) in Saudi Arabia offers a 6.28% forward dividend yield, making it one of the most attractive income stocks in the region. Its 66.6% payout ratio covered by earnings and 42.1% covered by cash flows indicate a sustainable dividend policy. The bank's 16.6% CET1 capital adequacy ratio—well above the Saudi Arabian Monetary Agency (SAMA) minimum—provides a buffer against economic shocks.

ANB's strategic focus on digital banking, SME lending, and fee-based income aligns with Saudi Arabia's Vision 2030 goals, positioning it to capitalize on long-term growth. Despite challenges like oil price volatility and rising credit loss provisions, the bank's 15.38% year-on-year loan portfolio expansion and 7% net profit growth in H1 2025 highlight its operational strength. For investors, ANB's disciplined cost management and regulatory tailwinds make it a compelling choice, though macroeconomic risks warrant cautious exposure.

Investment Thesis: Balancing Yield and Resilience

The three stocks present distinct risk-return profiles:
- Avrupakent Gayrimenkul offers the highest yield and strongest balance sheet, ideal for conservative income seekers.
- Osmanli Yatirim provides exposure to Turkey's volatile capital markets, with strategic hedging tools but earnings volatility.
- Arab National Bank combines a robust capital position with growth-aligned strategies, appealing to investors comfortable with moderate risk.

Conclusion: A Strategic Approach to High-Yield Investing

In a Middle East market characterized by oil price swings and monetary policy uncertainty, income-focused investors must prioritize companies with strong earnings resilience, low leverage, and strategic adaptability. Avrupakent Gayrimenkul, Osmanli Yatirim, and Arab National Bank each offer unique advantages: AVPGY's fortress balance sheet, OSMEN.IS's hedging expertise, and ANB's capital strength. By diversifying across these sectors and geographies, investors can harness high yields while mitigating the risks of a volatile environment.

For those seeking income stability, the key lies in selectivity and diversification—leveraging the strengths of each company to build a resilient, high-yield portfolio.