Title :

CMI DIVIDEND DISTRIBUTION POLICY

Content :

 

 

Dividend Distribution Policy

(In accordance with MSX Circular No. 3/2025)

Construction Materials Industries SAOG announces that its Board of Directors approved the Dividend Distribution Policy during its meeting held on 15 February 2026, in accordance with Muscat Stock Exchange Circular No. (3/2025) concerning Dividend Distribution Policy issued by the Muscat Stock Exchange (MSX).

This Policy aims to distribute dividends to shareholders, in principle, subject to the Company’s performance, financial position, availability of distributable profits, and obtaining the required regulatory and shareholder approvals.

The main provisions of this Policy are as follows:

Dividend Distribution Intent: The Company intends, in principle, to distribute dividends to shareholders in accordance with the provisions of this Policy and the applicable laws and regulations in force in the Sultanate of Oman.

Distribution Interval: Dividend distribution shall be annual, in principle.  The Board of Directors may recommend the distribution of interim dividends to shareholders, subject to the provisions of this Policy and the necessary approvals.

Dividend Distribution Strategy: Dividend distribution shall be cash, in principle. The Board of Directors may also recommend, subject to applicable laws and approvals:

•       Distribution of bonus shares;

•       Dividend Re-Investment Plans (DRIP); or

•       Any other form of dividend distribution permitted under the laws and regulations.

 

Company’s Financial Position: Dividend distribution by the Company shall be based on Net profits; and / or Retained earnings, as reflected in the Company’s audited financial statements.

Growth Strategy and Industry Updates: While the Company intends, in principle, to distribute dividends to shareholders, the Board of Directors shall take into consideration, when making its recommendation, the following:

•       Priority of maintaining a strong and stable financial position;

•       Ensuring adequate liquidity availability for the Company’s operations;

•       Planned investments and future growth initiatives; and

•       Economic, macroeconomic, and industry conditions, including competitive developments.

 

 

 

Dividend Distribution Plan: The disclosure of any dividend distribution proposal shall include:

•       The entitlement date for registered shareholders; and

•       The dividend amount per share based on the paid-up capital.

 

Dividend Announcement and Disclosure Plan: All announcements related to dividend distributions shall be published through:

•       The official disclosure platform of the Muscat Stock Exchange; and

•       The Company’s official website, in accordance with applicable regulatory requirements.

Such disclosures shall include full details of the dividend value, entitlement date, method of payment, and any decisions or developments that may affect the distribution process, ensuring clarity, transparency, and equal treatment of all shareholders. Only official disclosure channels shall be relied upon to avoid any confusion or conflicting information.

Dividend Approval: The Board of Directors shall submit its dividend distribution recommendation to the General Meeting of Shareholders for approval. Dividend distribution shall only be executed after obtaining official approval from the General Meeting of Shareholders.

Policy Rationale: The Company intends, in principle, to adopt annual cash dividend distribution to shareholders from net profits; and / or retained earnings, after considering the growth strategy and industry updates set out in this Policy and after obtaining the necessary approvals from:

•       The General Meeting of Shareholders; and

•       Relevant regulatory authorities, if applicable, in accordance with the laws and regulations in force in the Sultanate of Oman.

Financial Period Covered and Distribution Approval: Dividend distributions shall relate to the annual financial year. The Board of Directors shall recommend to the General Meeting of Shareholders the approval of the audited annual financial statements together with the proposed dividend distribution, within the prescribed regulatory timelines.

The General Meeting of Shareholders shall decide on the Board’s recommendations, and dividend distribution shall only be executed after receiving official approval, ensuring that the total dividend per share does not exceed the amount approved by shareholders.

Interim Dividends: As an exception to this Policy, the Company may announce interim dividends, subject to:

•       Recommendation of the Board of Directors;

•       Approval of shareholders; and

•       Full compliance with applicable regulatory requirements.

 

Principles Governing Distribution: Annual or interim dividends shall be declared based on audited financial statements or limited review of Financial Statement by Statutory Auditors approved by the General Meeting of Shareholders. With shareholder approval, a portion of net profits may be converted into shares allotted to shareholders in accordance with the Dividend Distribution Strategy, resulting in an increase in issued share capital. 

Prohibition of Dividend Distribution: Dividends shall not be distributed in the following cases:

•       If the distribution affects the Company’s ability to meet its financial obligations when due;

•       If the distribution results from unrealized or imaginary profits;

•       If the Company incurs losses that have not been fully covered.

 

Amendments: The Company reserves the full right to amend or update this Dividend Distribution Policy whenever necessary, in line with regulatory developments or changes in the Company’s financial or strategic circumstances.

Any material amendments shall be disclosed through approved official channels, including the MSX disclosure system and the Company’s official website, subject to approval by the Board of Directors. 

Disclaimer: This Policy serves as a guiding framework for dividend distribution and does not constitute a final commitment or absolute guarantee regarding future dividends.  

Dividend distributions depend on annual financial results, regulatory requirements, market conditions, and the Company’s financial strategy. The Board of Directors retains full discretionary authority to recommend, amend, defer, or cancel dividend distributions in the best interests of the Company and its shareholders. 

 

 

 Investor Relations Officer