Following a recent selloff in artificial intelligence-linked shares, investment managers are advising UAE-based investors to consider emerging-market sectors that offer lower valuations and higher dividend yields without heavy exposure to AI spending, Gulf News reported citing Bloomberg data. The main MSCI emerging-market index trades at approximately eight times expected earnings—less than half the multiple of the S&P 500—while delivering about twice the dividend yield.
Among the key sectors attracting interest are Chinese and Hong Kong dividend-paying equities and Chinese healthcare businesses. Sat Duhra, a portfolio manager at Janus Henderson Investors, stated that he has added higher-yielding Chinese and Hong Kong shares, pointing to improving dividend payout discipline among issuers outside the technology mega-caps.
Chinese healthcare equities have also drawn capital seeking growth outside semiconductor manufacturing. Bing Yuan, a fund manager at Edmond de Rothschild, holds Chinese healthcare companies such as BeOne Medicines, which has climbed 37% in 2026, and Wuxi Biologics Cayman, which has advanced 58%, according to Bloomberg data. Gulf News noted that while these gains demonstrate strong non-AI performance, they also represent higher entry prices for new investors.
Maxence Visseau, Chief Investment Officer at Dubai-based Arkevium Capital, told Bloomberg that multiple non-technology sectors across emerging markets offer stronger long-term growth prospects than their US equivalents at substantially more attractive valuation multiples. The report noted that investors must balance opportunities with currency factors, as the UAE dirham remains pegged to the US dollar.
Sources
- Gulf News · 2026-11-13
