MSCI adds Dubai’s DEWA to emerging markets index effective May 30

MSCI, a leading provider of investment decision tools, announced that Dubai Electricity and Water Authority PJSC (DEWA) will be included in the MSCI Emerging Markets Index, effective at market close on May 30.

DEWA, Dubai’s exclusive electricity and water services provider and the largest listed company on the Dubai Financial Market (DFM) by market capitalisation, was among the largest additions to the index by full company value.

“This inclusion marks a pivotal milestone in DEWA’s journey as a publicly listed company and reinforces our growing relevance on the global investment stage,” said Saeed Mohammed Al Tayer, vice chairman and MD and CEO of DEWA. “Our fundamentals, governance, and operating standards reflect global best practices.”

DEWA has a market cap exceeding Dhs130bn

DEWA has a market capitalisation exceeding Dhs130bn, a strong dividend track record, and a clean energy agenda aligned with Dubai’s net-zero ambitions.

The company’s inclusion is expected to result in increased visibility, improved liquidity, and passive capital inflows from institutional and index-linked funds that track MSCI benchmarks.

The MSCI Emerging Markets Index, tracked by an estimated $7tn in assets, is a widely followed benchmark that captures large- and mid-cap representation across 24 emerging markets including China, India, Brazil, Saudi Arabia, and the UAE.

Index additions often lead to non-discretionary capital inflows from passive investors, creating consistent buy-side pressure on newly added stocks.

DEWA’s addition underscores the growing relevance of the UAE’s capital markets and reflects rising investor appetite for stable, yield-generating infrastructure assets in the region.

The utility major’s 2022 IPO was one of the region’s largest, and its MSCI inclusion adds momentum to its international investor profile.

Robust quarter earnings

The inclusion in the MSCI Emerging Markets Index follows a robust financial performance for Q1 2025. DEWA reported quarterly revenue of Dhs 5.96 billion, EBITDA of Dhs2.43bn, and a net profit of Dhs496m.

Operating profit stood at Dhs838m, while net cash from operations reached a record Dhs3.85bn — 17.86 per cent higher than the same period last year—raising the company’s cash and cash equivalents to Dhs8.17bn.

The utility also saw continued demand growth, generating 10.5 TWh of electricity (including 1.86 TWh from clean sources) and producing 35.61 billion imperial gallons of desalinated water during the quarter.

With 17,579 MW of installed generation capacity — 20 per cent of which comes from clean energy sources — DEWA remains a key player in Dubai’s energy transition. It plans to expand clean energy capacity to 7.5 GW by 2030, representing 34 per cent of the generation mix.

The company also reaffirmed its commitment to long-term shareholder value with an expected Dhs6.2bn annual dividend payout policy, and distributed Dhs3.1bn to shareholders in April 2025 for H2 2024.