Title :

Oman Arab Bank

Dividend Distribution Policy

Content :

 

Table of Contents

 

1.            Introduction. 3

2.            Objectives. 3

3.            Dividend Intent3

4.            Distribution Frequency. 3

5.            Forms of Dividend Distribution. 3

6.            Financial Considerations. 4

7.            Strategic and Risk Considerations. 4

8.            Disclosure of Dividend Distribution. 4

9.            Approval Process. 4

10.         Amendments. 5

11.         General Provisions. 5

12.         Contact Information. 5

 

1.       Introduction

 

This Dividend Distribution Policy (the “Policy”) sets out the framework governing the declaration, recommendation, approval, and payment of dividends by Oman Arab Bank (the “Bank”). This Policy is adopted in compliance with Muscat Stock Exchange Circular No. (3/2025) regarding Dividend Distribution Policy and other applicable laws and regulations of the Sultanate of Oman.

 

2.       Objectives

 

The objectives of this Policy are to:

 

a)     Enhance transparency and clarity for shareholders and investors regarding the Bank’s dividend practices;

b)     Communicate the Bank’s approach to dividend determination, timing, approval, and disclosure;

c)      Balance shareholder returns with the Bank’s operational, liquidity, financing, and growth requirements; and

d)     Align with MSX disclosure requirement and recognized corporate governance standards.

 

3.       Dividend Intent

 

The Bank intends, in principle, to distribute dividends to its shareholders. However, dividend payments are not guaranteed and may vary depending on the Bank’s financial performance, liquidity position, capital requirements, regulatory obligations, and prevailing market and economic conditions. Dividend recommendations shall be subject to approval by the Central Bank of Oman (“CBO”) and the Bank’s shareholders.

 

4.       Distribution Frequency

 

Dividends shall be considered on an annual basis.

 

5.       Forms of Dividend Distribution

 

Subject to applicable laws, regulations, and approvals, dividends may be distributed in one or more of the following forms:

 

a)     Cash dividends;

b)     Bonus (stock) dividends;

c)      Equity-linked or hybrid instruments, including Mandatory Convertible Bonds (MCBs) or similar instruments, where permitted under applicable regulations.

 

6.       Financial Considerations

 

Dividend distribution decisions shall take into account the Bank’s financial position, including but not limited to:

 

a)     Net profit and retained earnings as reported in audited financial statements;

b)     Paid up capital, capital adequacy ratio (CAR), and other regulatory capital ratios;

c)      Liquidity position and funding requirements;

d)     Compliance with statutory reserve requirements and financial covenants (if any) and

e)     The prevailing macroeconomic and regulatory environment.

 

7.       Strategic and Risk Considerations

 

In determining dividend recommendations, the Board shall give due consideration to the following factors, including but not limited to:

 

a)     Maintaining a strong and resilient capital base in line with regulatory requirements and internal risk appetite limits;

b)     Ensuring adequate liquidity to support operations, funding obligations, and risk management needs;

c)      Planned investments, business growth, and long-term strategic initiatives; and

d)     Economic, regulatory, and competitive conditions affecting the banking sector.

 

8.       Disclosure of Dividend Distribution

 

Dividend announcements shall disclose, at a minimum, the dividend amount per share and the form of distribution. All dividend-related disclosures shall be made through the official disclosure platform of the Muscat Stock Exchange.

 

9.       Approval Process

 

Dividend recommendations are proposed by the Board and are subject to approval by the Central Bank of Oman and the Bank’s shareholders at the Annual General Meeting.

 

10.   Amendments

 

The Board reserves the right to amend, revise, or update this Policy in response to changes in regulatory requirements, business conditions, financial performance, or strategic priorities. Any material amendments shall be approved by the Board and disclosed in accordance with applicable regulations.

 

11.   General Provisions

 

This Policy does not constitute a commitment or obligation to declare or pay dividends. Actual dividend declarations depend on the Bank’s financial performance, cash availability, regulatory approvals, market conditions, and other relevant circumstances at the time of consideration. In the event of any inconsistency between this Policy and applicable law or regulations, the applicable law and regulations shall prevail. Any amendment to such regulations shall be deemed automatically incorporated into this Policy.

 

12.   Contact Information

 

Email:  [email protected]

Telephone:  +968 24754334