Talabat Plans 5% Share Buyback to Boost Investor Confidence Amid Market Scrutiny

Mohammed Fathy

Last updated 13-03-2026

4 min

Talabat plans to buy back up to 5% of shares over two years.

The board says the current valuation “does not fully capture” long-term strength.

Shareholders will vote on a $219m final dividend, lifting 2025 payouts.

Buybacks will use existing cash, with no guarantee the full 5%.

Management will also appoint a liquidity provider to boost DFM trading.

Talabat is moving to buy back up to 5% of its issued share capital, in a move that signals confidence from its board at a time when public tech stocks are under constant scrutiny. The proposal will be put to shareholders, and if approved, the programme could run for as long as two years from the date of that green light.

The Dubai-listed delivery heavyweight plans to execute the buyback through open-market transactions on the Dubai Financial Market (DFM), following all applicable regulations and under board supervision. The repurchases would be funded from existing cash reserves and ongoing free cash flow. That said, there is no guarantee the full 5% will be bought; the final number will depend on market conditions, liquidity and, of course, the share price at the time.

Alongside the buyback proposal, shareholders at the upcoming AGM will vote on several resolutions, including a final dividend of $219 million for the second half of 2025. That equates to 3.450 fils per share. If approved, total dividends for 2025 would reach $421 million, or 6.638 fils per share. Since its IPO in December 2024 on the DFM, cumulative dividends would stand at $531 million, equal to 8.373 fils per share.

Toon Gyssels, Chief Executive Officer of talabat, said the proposed buyback reflects the company’s belief that its current market valuation does not fully capture the long-term strength of its platform. He noted that the repurchase plan, combined with the existing dividend policy, underlines a commitment to delivering solid total returns for shareholders while still investing in growth across food, grocery and retail segments.

From a capital allocation perspective, talabat says it is focused on investments that generate returns above its cost of capital, while returning excess funds to shareholders when it makes sense. With what it describes as a strong balance sheet and healthy cash generation, the board views share repurchases at the current valuation as an efficient use of capital.

Separately, the board has also mandated management to appoint a liquidity provider for its shares on the DFM. The idea is simple, really: improve order book depth and enhance overall trading liquidity. A further update is expected once that appointment is finalised.

Founded in Kuwait in 2004, talabat now operates across the UAE, Kuwait, Qatar, Egypt, Bahrain, Oman, Jordan and Iraq, serving more than six and a half million active customers as of December 2024. Headquartered in Dubai and backed by Delivery Hero SE, the company has built one of the region’s most recognisable on-demand platforms, connecting customers with restaurants, grocers and retailers through a large network of partners and riders.

For many founders across MENA, especially those Arageek readers who remember the early days when regional exits felt rare, talabat’s post-IPO capital strategy is interesting to watch. I still recall chatting with a young startup team in Dubai Internet City who saw talabat’s listing as proof that scaling from Kuwait to the wider region wasn’t just a pipe dream. Moments like this can feel chuffed to bits for the ecosystem, even if buybacks themselves are a bit of a technical subject.

On the flip side, I’m not always a fan of companies focusing too heavily on financial engineering. I reckon long-term value in this region still comes from product depth and operational excellence. But if talabat can balance growth investments with shareholder returns, well… that might be spot on.

As always, much will depend on market conditions over the next two years. For now, the message from the board is clear: they believe the company’s shares are undervalued and that returning capital in a disciplined way is the right step foward.

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