Content :

Dividend Policy

Version 1

 

Contents

First- Policy Objectives:2

Second - Mechanisms for distributing dividends to shareholders:2

Third - Growth Support Strategy:3

Fourth - Commitment to transparency:4

Fifth -  Duties and Responsibilities:4

Sixth - General Provisions:5

Seventh - Disclaimer:6

Eighth - Contact Information:6

 

 

 

Schedule of Publications

 

 

 

 

First- Policy Objectives:

Based on Circular No. (3/2025) issued by the Muscat Stock Exchange regarding the Guidelines for the Preparation of the Dividend Policy for Listed Companies , this policy has been issued to achieve the following objectives:

• Providing stable returns to shareholders
• Supporting the Company's Future Growth
• Enhancing transparency and governance
• Compliance with regulatory and legal requirements

Second - Mechanisms for distributing dividends to shareholders:

The Company intends, in principle, to distribute dividends to its shareholders in a sustainable manner in accordance with the provisions of this Policy, in line with the laws and regulations in force in the Sultanate of Oman, and taking into account the financial performance, available liquidity, economic and sectoral conditions, and the Company's financial position, in accordance with the following mechanisms:

1.      Distribution Periodicality

The dividend distribution shall be annually after the evaluation of the financial performance for the full financial year, and the Board of Directors may recommend interim distributions (semi-annual or quarterly) in accordance with the controls and after ascertaining the availability of distributable dividends.

2.      Methods of Distribution

The Company may distribute dividends in one of the following ways:

·       Cash Dividends

·       Free Shares

·       Free bonds (transferable or non-transferable)

·       Or a combination of the options mentioned

This is in accordance with the company's financial position and strategic needs.

 

 

3.      Principles to which distribution is subject

Earnings are announced based on:

·       Audited Financial Statements

·       Compliance with laws and regulations

·       No Distribution of Fake or Unrealized Profits

·       Not to harm the company's financial position

4.      Dividend bans

Dividends may not be distributed in the following cases:

·       If the distribution affects the company's ability to meet its obligations

·       If the profits are unrealized or sham

·       If the company incurs losses that are not fully covered

5.      Approval of dividends

No dividend is executed until after:

·       Board Recommendation

·       Approval of the General Assembly of Shareholders

·       Obtaining the necessary regulatory approvals (if any)

Third - Growth Support Strategy:

In recommending dividends, the Board of Directors takes into account the importance of the Company's future growth and expansion by reviewing the following:

• Future expansion plans
• Investment Projects
• Capital Needs
• Maintaining a strong and stable financial position
• Seizure (10%) ten percent of the net profits annually to form  a legal reserve  for a company, until the total legal reserve reaches (33.33%) thirty-threepercent of the company's assets.

Fourth - Commitment to transparency:

Be fully transparent when disclosing any dividend proposal by including the following:

• Distribution Due Date 
• Percentage of cash distribution
• Percentage of bonus shares (if applicable)
• Dividend value per share
• Total Distribution Value
• Number of free shares (if any)
• Nominal value of bonus shares (if any)
• Indicate the required regulatory approvals
• Post all dividend-related announcements via:

ü  Muscat Stock Exchange's Official Disclosure Platform

ü  The company's official website

All  procedures related to the payment mechanism, and any developments that may affect the distribution process, will be followed up, ensuring clarity, transparency and equality among shareholders.

Fifth -  Duties and Responsibilities:

1.      Responsibility of the General Assembly  

The General Assembly shall approve the distribution of dividends based on the recommendation of the Board of Directors, taking into account the appropriateness of the amounts distributed to the Company's circumstances and not to harm the interests of the shareholders in line with the Company's policy, articles of association and related regulations.

2.      Board Responsibility

The Board of Directors shall recommend to the Ordinary General Assembly the distribution of dividends and the determination of the total amount distributed, the share of each share of the distribution, its percentage of the nominal value of the share, the date of eligibility and the date of distribution based on the information available to it to assist it in making a decision. The Board of Directors also takes into account macroeconomic conditions, industry developments, competition, and any external factors that may affect the Company's ability to distribute dividends.

3.      Duties andResponsibilities of the Executive Management

أ‌.       Prepare the required financial statements, review the balances of the relevant accounts, and prepare a report on the financial ratios that must be maintained to achieve the appropriate financial position of the Company, provided that the reports submitted to the Board of Directors include, but are not limited to:

•  Net Profit Realized
• Retained earnings
• Liquidity levels
• Cash Flows
• Indebtedness ratios
• Future financial obligations

ب‌.    Clarification of the legal standards andconsiderations  or restrictions imposed on the company, if any.

ت‌.    Implement the decision to distribute dividends to shareholders by transferring the approved cash dividends to the account of Muscat Clearing and Depository Company.within a period not exceeding three working days from the date of the Annual General  Meeting of the General Assembly, in order to enable Muscat Clearing and Depository Company to transfer the profits to the bank accounts ofbeneficiaries within a period not exceeding seven working days from the date of the Annual General Meeting of the Shareholders.

Sixth - General Provisions:

·       The Board of Directors may amend this Policy as necessary in line with the Company's regulatory developments or financial or strategic changes.

·        Any amendment must be disclosed through the approved official channels.

·       This policy is considered to be complementary to the laws, regulations and regulations of the competent authorities in the Sultanate of Oman, and in case of any conflict with it, the laws and regulations of the competent authorities shall prevail.

·       This policy has been drafted in both Arabic and English, and in case of any conflict between them, the Arabic text will be adopted.

 Seventh - Disclaimer:

This policy is a guiding framework for dividends and does not constitute an absolute commitment or guarantee of future dividends, and distributions may vary from year to year depending on financial results, economic conditions and regulatory requirements.

Eighth - Contact Information:

For inquiries related to this policy, please contact our Investor Relations Officer:

Email: [email protected]

 

 

Anis Almamari

Chief Executive Officer