For Dubai’s DEWA, Empower’s DFM arrival adds another dividend dimension

For Dubai’s DEWA, Empower’s DFM arrival adds another dividend dimension

Dubai’s DEWA now has a market cap of Dh124 billion and a financial profile with excellent visibility of cash flow and shareholder returns. The company’s performance is directly tied to the local economy’s prospects, forecast to grow at above 5 per cent in 2022, supported by continued domestic demand, a robust tourism sector, solid business ecosystem and continued emphasis on infrastructure projects. Into this mix comes the Empower IPO to boost DEWA’s prospects further, which has majority ownership in the world’s largest district cooling service provider. Empower is set for a November 16 listing and thus joins DEWA, Tecom and Salik. These also serve as a testament to the health of the economy and strong demand for high-quality paper from the emirate. Empower’s arrival will be beneficial to DEWA investors who could see their shares appreciate. Additionally, DEWA would receive a minimum dividend of Dh535 million per annum, in the first two fiscal years following the Empower offer, which may be passed on to DEWA shareholders. The presence of UAE government backed equities with compelling dividends is an attractive proposition. DEWA remains adamant in paying a minimum dividend of Dh6.2 billion per year over the next five years, while seeking