Dubai Electricity & Water Authority PJSC: A Powerhouse in the Expanding Dubai Economy

The Dubai Electricity & Water Authority (DEWA) has been an integral part of Dubai's growth and development since its inception in 1992. Born from the merger of the Dubai Electricity Company and the Dubai Water Department, DEWA has been the exclusive provider of electricity and potable water in Dubai, growing along with the city's burgeoning economy, population, and infrastructure. On 30 December 2021, DEWA was established in its current form as a public joint stock company, succeeding the Dubai Water and Electricity Authority. This transformation marked a significant milestone in the company's history, further cementing its place in Dubai's economic landscape. In terms of financial performance, DEWA's recent yields have seen a slight dip. The 3-month yield stands at -0.08%, and the 1-month yield is at -0.06%. While these figures may raise eyebrows, it's crucial to keep in mind the broader context. DEWA boasts a substantial market cap of 120 billion, a testament to its significant role in the region's infrastructure. The power and water sector is a staple industry, with a steady demand that is likely to continue in the foreseeable future. As Dubai continues to grow and develop, DEWA's role as the exclusive provider of electricity and water in the city ensures its continued relevance in the market. Given the company's history, its integral role in Dubai's infrastructure, and its substantial market cap, it would be prudent for investors to maintain a neutral stance. While the recent yields may not be overly impressive, the company's overall standing in the market and its importance in the region's economy should not be overlooked.