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HOW TO INVEST IN DUBAI ELECTRICITY AND WATER AUTHORITY (DEWA) STOCK

Dubai Electricity and Water Authority (DEWA) is Dubai's exclusive provider of electricity and water services, operating significant infrastructure projects like the Jebel Ali Power and Desalination Plant and the Mohammed bin Rashid Al Maktoum Solar Park. Listed on the Dubai Financial Market (DFM) under the ticker DEWA, the company offers investors exposure to the UAE's utility sector. This guide outlines the steps to purchase DEWA shares, understand its dividend policy, and assess its role in Dubai's sustainable energy initiatives.

How to invest in DEWA shares

Purchasing DEWA stock on the DFM

Dubai Electricity and Water Authority (DEWA) is a government-owned utility company responsible for providing electricity and water services in Dubai. To invest in DEWA, follow these steps:

Choose a DFM-licensed broker: Options include Emirates NBD Securities, ADCB Securities, and international platforms like Interactive Brokers.
Obtain a National Investor Number (NIN): Required for trading on the DFM; your broker can assist with the application.
Complete the account setup: Provide necessary identification and address verification documents.
Fund your trading account: Transfer funds in AED or other accepted currencies.
Purchase DEWA shares: Use your broker's platform to search for DEWA (ticker: DEWA) and place your buy order.

Understanding DEWA's market position

DEWA plays a pivotal role in Dubai's infrastructure, managing key projects such as:

Jebel Ali Power and Desalination Plant: One of the world's largest gas-fired power and desalination plants, with an installed capacity of 8.6 GW and the ability to desalinate 2.228 million cubic meters of seawater per day.
Mohammed bin Rashid Al Maktoum Solar Park: A significant renewable energy project aiming for a capacity of 5,000 MW by 2030, contributing to Dubai's clean energy strategy.

These initiatives underscore DEWA's commitment to sustainable energy and its integral role in Dubai's development.

Is investing in DEWA stock straightforward?

Yes—accessible via the DFM

Investing in DEWA is straightforward for both UAE residents and international investors. Once your brokerage account is set up and funded, you can trade DEWA shares during DFM trading hours. DEWA's listing on the DFM ensures transparency and regulatory oversight.

Stable dividend policy: DEWA has a history of consistent dividend payouts, appealing to income-focused investors. For instance, in 2024, DEWA approved a dividend payment of AED 3.1 billion to shareholders for the second half of the year.
Government backing: As a government-owned entity, DEWA benefits from strong institutional support.
Strategic importance: DEWA's operations are crucial to Dubai's infrastructure and growth, potentially providing long-term investment stability.

Key considerations for DEWA investors

Market performance: Monitor DEWA's financial reports and market performance to make informed investment decisions.
Regulatory environment: Stay updated on any regulatory changes in Dubai's utility sector that could impact DEWA's operations.
Renewable energy initiatives: DEWA's investment in renewable energy projects aligns with global sustainability trends, potentially influencing future growth.

By considering these factors, investors can better assess DEWA's potential as a long-term investment in Dubai's utility sector.