1. INTRODUCTION

1.1 Objective

This Dividend Distribution Policy (“Policy”) establishes the framework adopted by Al Fajar Al Alamia Co SAOG (“the Company”) for determining, declaring, and disclosing dividends to its shareholders, in compliance with the requirements of the Muscat Stock Exchange (MSX) Circular No. (3/2025) and the Oman Commercial Companies Law.

The Policy aims to:

• Promote transparency and consistency in dividend decisions
• Balance shareholder returns with the Company’s profitability, liquidity, and long-term financial sustainability
• Ensure compliance with regulatory and governance requirements

1.2 Scope

This Policy applies to all dividends declared by the Company in respect of its listed equity shares on the Muscat Stock Exchange.

It covers:

• Annual dividends
• Interim dividends (if declared)

1.3 Responsibility

  The Board of Directors is responsible for approving this Policy.

  Executive Management is responsible for implementation and compliance.

1.4 Policy Review and Amendment

This Policy shall be reviewed at least once every two years or earlier if required due to:

• Regulatory changes
• Financial or strategic developments

Any amendments shall be approved by the Board and disclosed through MSX.

1.5 Next Review

The Policy will be reviewed periodically and updated as required.

2. REGULATORY BASIS

This Policy is prepared in accordance with:

• MSX Circular No. (3/2025)
• Articles of Association of the Company
• Oman Commercial Companies Law
• Applicable MSX Listing Rules

3. DIVIDEND PHILOSOPHY

The Company aims to provide sustainable returns to shareholders while maintaining financial stability and supporting future growth.

Dividend decisions will consider:

• Profitability and retained earnings
• Cash flow and liquidity
• Capital expenditure requirements
• Debt obligations
• Market conditions and future outlook

4. DIVIDEND FREQUENCY

·         Dividends are generally declared annually, subject to Board recommendation and shareholder approval

·         The Board may declare interim dividends where appropriate

5. DIVIDEND DETERMINATION CRITERIA

The Board will consider:

• Net profit and sustainable earnings
• Free cash flow availability
• Financial position and reserves
• Future business plans
• Regulatory compliance
• Shareholder expectations
• Bank compliances

Key financial indicators include:

• Dividend payout ratio
• Dividend coverage ratio
• Free Cash Flow to Equity (FCFE)
• EBITDA
• Debt-to-equity ratio