Dubai Electricity & Water Authority: Powering Dubai's Future
A deep dive into the performance and prospects of Dubai Electricity & Water Authority PJSC, the exclusive provider of electricity and water in Dubai.
Summary
Despite the slight negative yield in recent months, the Dubai Electricity & Water Authority PJSC shows promising prospects due to its monopoly position, robust infrastructure, and alignment with Dubai's growth trajectory.
The Dubai Electricity & Water Authority PJSC (DEWA) has been a cornerstone of Dubai's infrastructural development since its establishment in 1992. With a market cap of AED 122 billion, the company's growth and stability are a testament to its strategic importance in the Emirate's economy.
Recent months have seen a slight negative yield, with the 3-month yield at -0.03% and the 1-month yield at -0.01%. However, this minor dip should not overshadow the company's potential. DEWA's monopoly position as the exclusive provider of electricity and water in Dubai ensures a steady revenue stream and a secure investment.
Moreover, DEWA's business growth has been closely tied to Dubai's expanding economy, population, and infrastructure. As Dubai continues to grow and attract global businesses and tourists, the demand for DEWA's services can only increase.
Furthermore, the company's recent establishment as a public joint stock company, pursuant to Law No. (27) of 2021, signals a new chapter in its journey. This transformation could open up new avenues for growth and expansion, further solidifying DEWA's position in the market.
Given these factors, despite the recent minor yield dip, the future of DEWA looks promising. Therefore, considering the company's stable position, potential growth prospects, and strategic importance in Dubai's economy, our recommendation would be to buy.
