Dividend Distribution Policy
Title :
Dividend Distribution Policy
Content :
Oman Qatar Insurance Company SAOG
Dividend Distribution Policy
| REVIEWED AND RECOMMENDED BY THE AUDIT & RISK COMMITTEE & APPROVED BY THE BOARD
DATE:24th February 2026 MEETING REF: 1st ARC 2026 / 1st BOD 2026 |
| Status / Version: |
Final |
| Document Owner: |
Investor Relation Officer |
TABLE OF CONTENTS
1. Executive Summary and Strategic Rationale. 3
2. Legal and Regulatory Compliance. 3
4. Parameters to be Considered While Recommending or Declaring Dividends4
4.1. Financial and Internal Factors. 4
5. Circumstances Under Which Dividends May or May Not Be Recommended. 4
6. Quantum and Manner of Dividend Payout. 5
9. Policy review and amendments6
1. Executive Summary and Strategic Rationale
The Board of Directors of Oman Qatar Insurance Co. SAOG (the “Company”), at its meeting held on 24 February 2026, resolved to approve and adopt this Dividend Distribution Policy in line with applicable regulatory requirements and the Muscat Stock Exchange guidelines.
The Board affirms its commitment to adopting a transparent, structured, and well-governed dividend distribution framework that reflects the highest standards of corporate governance and responsible capital management.
The Board recognizes that a clear, transparent, and predictable dividend policy constitutes a fundamental pillar of sound corporate governance and effective investor relations. Accordingly, this Policy formalizes the Company’s strategic approach to profit distribution, ensuring alignment with regulatory expectations, market best practices, and the Company’s long-term financial sustainability objectives.
2. Legal and Regulatory Compliance
This Policy is formulated in strict accordance with:
o The Commercial Companies Law of the Sultanate of Oman and its executive regulations.
o MSX Circular No. 3/2025 regarding Dividend Distribution Policy Guidelines.
o The Articles of Association of the Company.
The declaration and payment of any dividend remain subject to the approval of the shareholders at the Annual General Meeting (AGM).
3. Scope and Objective
This Policy aims to balance the interests of shareholders with the Company’s growth ambitions, capital adequacy requirements, solvency considerations, liquidity position, and overall financial resilience, thereby supporting sustainable long-term shareholder value creation.
The Policy establishes a broad and structured framework governing the distribution of dividends by the Company, while prudently balancing the need to retain earnings to support future growth, strategic initiatives, operational stability, and long-term sustainability.
Through this Policy, the Company endeavors to promote fairness, consistency, and transparency in its dividend distribution practices, ensuring that shareholders have clear visibility on the principles guiding profit distribution decisions.
The Policy outlines the key considerations, financial parameters, and circumstances that may be taken into account by the Board of Directors when determining whether to recommend the distribution or retention of profits. These considerations are intended to enhance transparency and strengthen investor confidence.
4. Parameters to be Considered While Recommending or Declaring Dividends
In determining whether to recommend or declare dividends, the Board of Directors shall undertake a comprehensive assessment of the Company’s financial position, capital requirements, regulatory obligations, and prevailing market conditions. The decision shall be based on a balanced evaluation of financial, operational, and external considerations, including but not limited to the following:
4.1 Financial and Internal Factors
- Profits earned during the financial year and distributable earnings available in accordance with applicable laws and regulations.
- Accumulated reserves, including retained earnings.
- Statutory or mandatory transfers to specific reserves (e.g., contingency reserve, general reserve, or any other regulatory reserves applicable to insurance companies).
- Historical dividend trends, including dividend rate, Earnings Per Share (EPS), dividend payout ratio, and overall earnings stability.
- Sustainability and predictability of earnings.
- Current and projected cash flows.
- Current and forecasted cash balances and working capital requirements.
- Future capital expenditure requirements and strategic investment needs.
- Business growth plans.
- Capital management initiatives, including capital restructuring, debt reduction, or capitalization of shares.
- Potential crystallization of contingent liabilities.
- Solvency margin requirements and capital adequacy levels as applicable to the insurance sector.
- Compliance with financial covenants in loan agreements, debt servicing obligations, and debt maturity profile, where applicable.
4.2 External Factors
- Prevailing economic conditions at both domestic and global levels.
- Industry-specific developments and market dynamics.
- Unfavorable or volatile market conditions.
- Changes in applicable laws, government policies, or regulatory requirements.
- Inflation rates and macroeconomic trends.
- Cost and availability of external financing and alternative funding sources.
- Shareholders’ expectations and overall market sentiment.
The Board shall ensure that any dividend recommendation is prudent, sustainable, and aligned with the Company’s long-term strategic objectives and regulatory capital requirements.
5. Circumstances Under Which Dividends May or May Not Be Recommended
The decision to recommend or declare dividends is a significant capital management determination, as it directly impacts the allocation of profits between shareholder returns and retained earnings to support the Company’s ongoing operations, regulatory capital requirements, and strategic growth objectives.
Shareholders may reasonably expect dividend distributions where the Company generates sufficient distributable profits and maintains adequate surplus funds after accounting for operating expenses, depreciation, provisioning requirements, statutory transfers to reserves, solvency margin requirements, and compliance with all applicable laws and regulatory obligations.
However, dividend payments are neither automatic nor guaranteed. Subject to the discretion of the Board of Directors and applicable regulatory approvals, shareholders may not expect dividend distributions under circumstances including, but not limited to, the following:
o Where the Company records insufficient distributable profits or incurs losses during the relevant financial year.
o Where the Company undertakes or proposes to undertake significant expansion plans, strategic initiatives, or capital-intensive projects requiring retention of earnings.
o Where the Company undertakes or proposes mergers, acquisitions, or other inorganic growth transactions necessitating substantial capital allocation.
o Where the Company experiences elevated working capital requirements that materially impact free cash flow.
o Where regulatory authorities impose restrictions or prohibit the recommendation or declaration of dividends.
o Where maintaining or strengthening the Company’s capital adequacy, solvency position, or financial stability is deemed necessary in light of prevailing economic or market conditions.
The Board of Directors retains full discretion to withhold or defer dividend recommendations after considering any other material, financial, operational, or regulatory factors that it deems relevant in the best interests of the Company and its stakeholders.
6. Quantum and Manner of Dividend Payout
Subject to the considerations and circumstances outlined in this Policy, the Company shall endeavor to maintain a prudent and sustainable dividend payout approach that reflects its financial performance, capital position, liquidity profile, regulatory capital requirements, and long-term strategic objectives.
The Company’s dividend distribution shall be in cash. Dividends, if recommended, are generally considered on an annual basis following the review and approval of the Company’s Annual Financial Statements. Such dividend, commonly referred to as a final dividend, shall be recommended by the Board of Directors and remain subject to the approval of shareholders at the Annual General Meeting (AGM).
The Board may declare interim dividends during the financial year only when deemed appropriate and subject to the Company’s financial performance and regulatory compliance. All dividend decisions shall be guided by principles of prudence, sustainability, and fairness to shareholders, while safeguarding the Company’s financial strength and long-term value creation.
7. Dividend Announcement
Dividend recommendations and approvals shall be announced following the adoption of the audited Annual Financial Statements. The Company shall disclose the dividend amount, if any, along with any relevant explanatory notes through the Company’s official website (www.oqic.com) and the Muscat Stock Exchange (MSX) disclosure platform. This approach ensures transparency, provides clear guidance to shareholders, and aligns with regulatory expectations.
8. Disclosures
The Policy shall be disclosed through appropriate channels, including the Company’s official website (www.oqic.com) and the Muscat Stock Exchange (MSX) disclosure platform, ensuring accessibility and compliance with all relevant regulatory requirements.
9. Policy Review and Amendments
This Policy shall be periodically reviewed and updated to ensure its continued relevance, effectiveness, and alignment with applicable laws, rules, regulations, and leading industry practices. The review process shall consider changes in regulatory requirements, market developments, economic conditions, and the Company’s strategic priorities. Any amendments to this Policy shall be approved by the Board of Directors and communicated appropriately to shareholders and stakeholders through the Company’s official disclosure channels.
10. Disclaimer
This Policy serves as a general guide on the Company’s approach to dividends and does not constitute a commitment or guarantee regarding the declaration of future dividends. The decision to recommend dividends remains at the sole discretion of the Board of Directors, which may depart from this Policy when deemed appropriate. Such decisions are made annually following a careful assessment of the Company’s financial performance, capital position, regulatory requirements, and other relevant factors considered by the Board.
11. Contact Information
For any inquiries, clarifications, or additional information related to the Company’s Dividend Distribution Policy, shareholders and stakeholders are encouraged to contact the designated officer responsible for investor relations. The officer will provide guidance, answer questions regarding dividend declarations, and assist with any requests for further clarification in line with this Policy.
Details:
Mohammed Hussain Mohammed Jawad
Board Secretory & Investor Relation Officer
Oman Qatar Insurance Co. SAOG
Tel: +968 90960835
Email:[email protected]
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