Middle Eastern Dividend Stocks To Consider In April 2025

The Middle East’s economic landscape is undergoing a transformative shift, driven by diversification efforts in Saudi Arabia, UAE, and Qatar, among others. This has created fertile ground for dividend-paying equities, offering investors steady income streams amid regional stability. In Q2 2025, several companies stand out for their attractive dividend yields and financial resilience. Below, we dissect six top picks, weighing their strengths, risks, and sustainability.

1. Computer Direct Group Ltd. (TASE:CMDR): The Highest Yield, but with Caveats

Dividend Yield: 9.73%
Location: Israel
Market Cap: ₪1.34 billion

Computer Direct Group leads the pack with its 9.73% dividend yield, bolstered by a robust revenue mix spanning infrastructure computing, business process outsourcing, and technological solutions. However, its payout ratio of 150.1%—far exceeding earnings—raises sustainability red flags. Despite this, the cash payout ratio of 33.8% suggests dividends are currently covered by cash flows.

Investors must proceed cautiously here. The company’s historically volatile dividends (as noted in the research) mean this stock may not suit risk-averse income seekers.

2. Saudi Telecom Company (SASE:7010): A Consistent Regional Leader

Dividend Yield: 9.22%
Location: Saudi Arabia
Financial Strength: Consistent net income growth

Ranked among Saudi Arabia’s top dividend payers, Saudi Telecom offers a yield of 9.22%, backed by a strong earnings trajectory. Its diversified operations in telecom services and digital infrastructure align with Saudi Vision 2030’s tech ambitions.

This stock’s recurring presence in top-10 dividend tables (including the April 2025 analysis) underscores its reliability. A payout ratio below 100% ensures dividends remain earnings-supported, making it a safer bet than CMDR.

3. National Bank of Umm Al-Qaiwain (ADX:NBQ): UAE Banking with High Yield Risks

Dividend Yield: 8.33%
Location: UAE
Revenue Streams: Treasury/investments (AED375.91M), retail/corporate banking (AED284.49M)

Despite its 8.33% yield, this UAE bank faces challenges: a 4% bad loan ratio and a coverage ratio of just 58%, below industry norms. The recent approval of a AED360M dividend signals confidence, but investors should monitor credit quality closely.

The stock’s appeal hinges on UAE’s broader economic stability, but its weak balance sheet metrics warrant caution.

4. Emaar Properties PJSC (DFM:EMAAR): Dubai’s Real Estate Champion

Dividend Yield: 8.3%
Location: UAE (Dubai)
Key Stat: Q1 2025 sales rose 30% YoY to AED142.7B

Emaar’s 8.3% yield reflects its dominance in Dubai’s real estate market, where it benefits from Expo 2020’s legacy and ongoing infrastructure projects. The company’s consistent performance places it in multiple top tables, including the April 求2025 analysis.

With Dubai’s tourism and real estate sectors booming, Emaar’s dividend appears sustainable, assuming it maintains its sales momentum.

5. National Bank of Ras Al-Khaimah (ADX:RAKBANK): Stable Banking Exposure

Dividend Yield: 8.08%
Location: UAE
Focus: Retail and corporate banking

RAKBANK’s 8.08% yield positions it among the top UAE dividend payers. A “reasonable payout ratio” (not specified in data, but implied by comparison to others) and steady earnings suggest this stock offers a balanced risk-reward profile.

6. Qatar National Bank (QNB): Qatar’s Economic Strength in a Dividend Package

Dividend Yield: 5%
Location: Qatar
Backed by: Qatar’s $600B GDP trajectory

While QNB’s yield is lower than peers, its stability is unmatched. As Qatar’s flagship bank, it benefits from the nation’s energy wealth and ambitious infrastructure projects. The 5% yield is underpinned by Qatar’s robust GDP growth, making it a defensive choice for income portfolios.

Key Observations

• Sustainability vs. Yield: CMDR’s 9.73% yield is enticing but unsustainable long-term. Saudi Telecom and Emaar offer better earnings-backed dividends.
• Geographic Spread: Top picks span Saudi Arabia, UAE, and Israel, reflecting the region’s economic diversity.
• Volatility Risk: Many stocks exhibit dividend swings, so investors must prioritize payout ratios and cash flow coverage.

Conclusion

For income-focused investors in April 2025, Saudi Telecom Company (9.22%) and Emaar Properties (8.3%) stand out as top choices due to their earnings resilience and sector-specific tailwinds. Meanwhile, Qatar National Bank (5%) offers a safe haven in a stable economy.

However, Computer Direct Group’s high yield comes with significant risks, and National Bank of Umm Al-Qaiwain’s poor credit metrics demand careful scrutiny.

Final Recommendation: Build a diversified portfolio emphasizing Saudi Telecom and Emaar while allocating smaller portions to RAKBANK and QNB. Avoid overexposure to CMDR unless you can tolerate dividend cuts. Always cross-check Simply Wall St’s payout sustainability metrics before committing capital.

The Middle East’s dividend landscape is ripe for opportunity—but only for those willing to dig deep into the numbers.