Investment Strategies in Arab Stocks 2025 | Comprehensive Guide to the Best Trading Company

Why Choose Arab Markets for Investment?

In recent years, Arab financial markets have experienced significant development, especially in the Gulf and Egypt, opening new horizons for investors seeking to diversify their portfolios. These markets offer unique advantages not easily found in global markets, such as stocks that regularly pay substantial dividends and companies with fair market capitalization relative to their true value.

Strong infrastructure and government support for companies in countries like the UAE and Saudi Arabia, along with a stable business environment, have made these markets attractive destinations for global investors. The available investment opportunities reflect the enormous economic diversification happening across the Middle East.

List of Top Dividend Stocks by Major Stock Exchanges

Stocks Paying Dividends on the Saudi Stock Exchange

The Saudi Stock Exchange is the largest in the Middle East in terms of market value and volume. Its appeal to global investors continues to grow with the diversification of available instruments and ongoing economic development.

Stocks Returning Dividends on the Abu Dhabi Stock Exchange

The banking, real estate, and oil sectors dominate stock movements in Abu Dhabi. Banks and the real estate sector are experiencing strong growth and are leading the list of stocks that pay dividends regularly.

Dividends-Paying Stocks on the Egyptian Stock Exchange

The Egyptian market is characterized by continuous volatility, creating repeated investment opportunities. Egyptian companies that rely on exports generate returns in foreign currencies with relatively low operating costs.

Global Stocks with Attractive Distributions

Recommended Investment Options for the Current Period

1- First Abu Dhabi Bank (FAB)

This bank is one of the largest financial institutions in the UAE, providing services to clients in the Middle East, Europe, and America.

Recent Financial Results:

• Net profit growth: 26% YoY to AED 10.630 billion
• Pre-tax profit increase: 29%
• Operating income growth: AED 18.310 billion
• Asset growth: 14%
• Loan growth: 11%
• Customer deposits increase: 6%

Valuation Summary: The stock presents a good opportunity for regular dividend seekers (4.56% with 5.63% annual growth distributed yearly). The bank’s financial position is strong, but interest rate fluctuations pose a potential risk to future profits.

Technical Analysis: Positive buy signals with dominance of short-term moving averages, and RSI indicators reflect upward momentum.

2- Al Rajhi Bank (1120)

One of the most established Saudi banks since 1957, specializing in Islamic banking and mortgage finance.

Financial Performance:

• Growth in net income after Zakat: 32.5% to SAR 12.100 billion
• Growth in operating revenues: 26.5%
• Return on equity: 23.5%
• Dividend yield: 1.98%

Growth Opportunities: Mortgage financing grew by 15%, corporate financing increased by 37.9%

Risks: Elevated risk costs at 0.31% and a 28.4% increase in impairment charges require close credit quality monitoring.

Technical Signals: Consensus of indicators supports an upward trend with price trading above long-term moving averages, but rising ATR indicates high volatility requiring caution.

3- Commercial International Bank (COMI)

The largest private bank in Egypt with strong diversification in digital and commercial banking services.

Q1 2025 Financial Results:

• Net income: EGP 16.6 billion, up 39%
• Total revenues: EGP 27 billion

Strengths: Strong revenue growth with diversified income sources

Risks: Currency fluctuations and inflationary pressures threaten profits

Technical Analysis: Neutral signals due to conflicting indicators, with price moving between different moving average levels.

4- Aramco (2222)

The world’s largest oil producer with diversified expansion into energy and logistics services.

H1 2025 Performance:

• Net income: SAR 190 billion
• Free cash flow: SAR 128 billion
• Dividends: SAR 79.290 billion (Quarterly)

Expansion Opportunities: Major developmental projects and international expansions in Chile and Pakistan

Main Risks: Global oil price volatility, reliance on international demand, and rising operating costs

Technical Indicators: Most indicators suggest buying opportunities with price above moving averages and positive signals from RSI and MACD

5- Abu Dhabi Commercial Bank (ADCB)

A leading financial institution since 1985 offering comprehensive services to individuals and corporations.

H1 2025 Results:

• Net profit: AED 5.014 billion
• Operating profit growth: 18%
• Non-performing loan ratio: 2.02%

Positive Indicators: High operational efficiency with cost-to-income ratio at 26.4% (the lowest ever), non-interest income at 36%

Challenges: Rising tax rate from 9% to 15% may impact profits

Dividends: 4% with 5.36% growth, distributed annually

6- Saudi Telecom (STC)

The largest telecom company in Saudi Arabia with expansion in digital and financial services.

H1 Performance:

• Profit growth: 13.4% annually
• Profit margin: 35% before taxes
• Revenue growth: 2%
• Dividend yield: 9.2% (Quarterly)

Advantages: Leading in infrastructure and 5G deployment, STC Bank app attracted 3 million users

Risks: Intense competition and ongoing high development costs

Technical Signals: Sell recommendations from most indicators with an overall downward trend

7- Emaar (EMAAR)

A leading real estate developer in the UAE specializing in residential, commercial, and hotel projects.

H1 2025 Financial Results:

• Real estate sales: AED 46 billion, up 46%
• Total revenues: AED 19 billion, up 38%
• Net income: AED 10.4 billion, up 34%
• Dividend yield: 7.35% with 100% growth

Attractive Points: Strong uncompleted sales indicators boost future revenues

Risks: Tied closely to Dubai’s real estate market and sensitive to price fluctuations

Technical Analysis: Clear buy signals with price above 200-day moving average and below 50-day, RSI and MACD indicate buying opportunities

8- Elm (7203)

A pioneer in the tech sector with digital transformation services and government consulting.

H1 2025:

• Net profit: SAR 1.080 billion, up 30.6%
• Total revenues: SAR 4.120 billion, up 21.02%
• EPS: SAR 13.95

Strengths: Significant revenue growth, diversified income, new dividend policy

Challenges: High operating costs and reliance on government contracts that may decline

Technical Signals: Strong buy opportunities with consensus among indicators despite price below 200-day moving average

9- Almarai (2280)

A leading Saudi food sector company in dairy, juices, and poultry with integrated supply chains.

H1 2025:

• Net profit: SAR 1.370 billion, up 5%
• Total revenues: SAR 11.050 billion, up 4.2%
• EPS: SAR 1.38

Investment Appeal: Strong demand for products and stable financial position

Challenges: High operating costs, currency fluctuations, intense competition

Technical Indicators: Neutral with mixed signals, short-term support and selling pressure conflicting

10- Telecom Egypt (ETEL)

Main provider of telecom services in Egypt despite increasing competition.

H1 2025:

• Net profit growth: 61% to EGP 10.5 billion
• Operating revenues: EGP 50 billion

Opportunities: Dominance in telecom sector and ownership of key infrastructure

Risks: High financing costs at EGP 6.6 billion may pressure profits

Technical Analysis: Strong buy recommendations from most indicators but high price volatility requires cautious risk management

Different Investment Strategies

Short-term Trading via CFDs

Trading CFDs allows investors to speculate on price movements without owning the underlying asset. Suitable for those seeking quick gains over limited periods (less than a year).

Practical Example: If an investor expects Tesla shares to rise, they open a buy position via CFDs and profit from the price difference when the prediction materializes, all without owning the actual stock.

Main Advantages:

• Leverage: Enables opening larger positions than capital allows, but also amplifies losses
• Profit from both directions: Can profit from rising and falling markets
• Lower costs: Cheaper than physical trading, ideal for quick speculation
• Market diversification: Access to stocks, forex, commodities, and indices from one platform

Long-term Investment

A proven method for building wealth over years and decades by holding strong stocks.

Buy-and-Hold Strategy: Select financially solid stocks and hold them regardless of short-term market fluctuations

Dollar-Cost Averaging (DCA): Regularly buy fixed amounts of a stock over time to lower the average purchase price below the current market price

Tips for Successful Investing

1- Invest in what you understand: As Warren Buffett advises, choose companies whose activities you can comprehend and analyze news about, increasing your ability to predict future performance

2- Master financial fundamentals: Learn to read financial statements and key ratios to determine the true value of a stock

3- Use technical indicators: Especially in short-term investments, learning technical analysis helps identify effective entry points

4- Stick to your plan: Develop a clear investment plan with specific goals and follow it. Review periodically but avoid abandoning it at the first sign of volatility

Final Summary

Investing in the best trading companies and Arab stocks offers real opportunities for financial growth, especially with increasing stability and the development of Arab companies. Arab markets have proven capable of hosting companies that can compete globally.

Investment success depends not on luck but on having a clear goal and following sound scientific methods. Start small, focus on continuous learning, and profits will come over time through disciplined practice.