In addition to enjoying a recent rally in most regional markets, Gulf investors are receiving another welcome boost: dividend payments for 2008.
Middle East companies, and Gulf-based corporates in particular, have traditionally been generous with dividends. Leading shareholders often exert great pressure on boards to be generous with dividends, even when management foresees tough times and wants to retain earnings.
Thus, while the economic and financial outlook deteriorated sharply towards the end of 2008, it was still overall a bumper year for profits, and boards have disbursed some of this to shareholders.
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