In the first quarter of 2026, companies throughout the Middle East distributed $29.2 billion to shareholders in the form of dividends, with Saudi Arabia representing nearly 84% of the total for the region. According to the inaugural Janus Henderson Global Dividend and Buyback Index, underlying dividend payments in the region experienced a 4% increase compared to the same period last year. Headline Middle East dividends decreased by 5% year-on-year; however, this decline was mainly due to changes in the payment calendar and did not indicate weaker underlying distributions. Saudi Arabian companies disbursed an estimated $24.5 billion in dividends during the quarter, positioning the kingdom as the largest source of payouts in the region. Qatar secured the second position with a distribution of $2 billion, whereas companies in the UAE allocated $1.7 billion.

Headline UAE payments decreased compared to the previous year, attributed to the timing of Dubai Islamic Bank’s dividend, as stated in the report. Global dividends experienced a year-on-year increase of 10.1%, reaching $424.5 billion in the first quarter. This growth was bolstered by elevated payments from North America, Europe, Japan, and the UK. The increase occurred notwithstanding elevated interest rates, trade uncertainties, and geopolitical risks that are influencing the broader economic landscape. Global share buybacks stood at $425.7 billion, marginally surpassing dividends, despite a 3.1% decline compared to the same period in 2025. The figures indicate varying strategies among companies in their efforts to return excess capital to investors. Dividend payments continued to expand, as firms adopted a more discerning approach towards the repurchase of their own shares. “Amidst what feels like an increasingly uncertain macro backdrop, the surprise has been the strength of earnings around the world,” said Jane Shoemake. “Those earnings almost always result in higher dividends, and that’s exactly what we’re now seeing across a range of industries and regions.”

The US maintained its position as the largest market for dividends and buybacks, with companies allocating $183.5 billion in dividends and repurchasing $266.7 billion of shares. US dividend payments represented 46.3% of the total index, with significant contributions from technology, financial, and energy sectors. Europe excluding the UK distributed $67.4 billion, reflecting a 35.5% increase from the first quarter of 2025. Currency movements and the timing of payments played a significant role in the increase. Switzerland emerged as Europe’s foremost dividend payer, disbursing a total of $27.3 billion, while Denmark followed with a substantial $9.4 billion. Financial companies constituted the predominant source of global dividends and share repurchases in the quarter. The sector allocated $90.8 billion in dividends and executed $110.7 billion in share repurchases, representing over one-third of the global buyback total. Basic materials companies exhibited the most rapid dividend growth among all industries, with payments rising by 47.1% year-on-year. The increase was bolstered by demand for essential minerals like copper and lithium, utilised in data centers, semiconductors, and the infrastructure that underpins artificial intelligence.

Technology companies distributed $43.7 billion in dividends and executed $66.6 billion in buybacks during the quarter. Janus Henderson anticipates that global dividend growth will achieve 8.3% in 2026, an increase from the 6.8% projected for 2025. Global buybacks are projected to decrease by 1.1% this year, following a 6.1% increase in the previous year. Resilient company earnings continue to underpin the dividend outlook, although elevated interest rates, geopolitical risks, and pressures on consumer-facing businesses persist as potential challenges. “Buybacks add another layer to the story. The absolute level of repurchases remains substantial, broadly in line with dividends in Q1, but the modest year-on-year decline also shows why they should be treated differently,” Shoemake said. “Dividends are generally long-term board decisions based on sustainability, while buybacks are more discretionary and cyclical in nature. In that sense, dividends remain the stronger signal of confidence, while buybacks act as a more flexible shock absorber.”