• After deduction of all overheads and other costs, the annual net profits of the Company shall be distributed as follows:
    • Ten percent (10%) of the net profits shall be retained to form a statutory reserve. The Ordinary General Assembly may discontinue such retention if the reserve reaches 30% of the paid capital.
    • The Ordinary General Assembly may, based on a proposal by the Board, retain a percentage of the net profits to form an additional reserve to be allocated for a certain purpose(s).
    • The Ordinary General Assembly may resolve to retain other reserves to the extent that serves the Company’s interest or ensures, as far as possible, consistent distribution of dividends to shareholders. The Assembly may also deduct from the net profits amounts to establish social institutions for the Company’s employees or to assist existing institutions.
    • The Board may recommend distribution of a certain percentage of the remaining profits to shareholders. The Company may distribute quarterly or semiannual dividends following satisfaction of liabilities of related bodies.
  • The Board must include in its annual report submitted to the General Assembly the portion of dividends distributed to shareholders during different periods of the financial years in addition to the portion of dividends proposed for distribution at the end of the financial year, and the aggregate dividend amounts.
  • A Company must, upon resolving to distribute interim dividends, disclose and announce such resolution immediately, and provide the CMA with a copy thereof immediately.

Entitlement to Dividends

  • A shareholder will be entitled to their share of dividends in accordance with the resolution adopted by the General Assembly in this regard. The resolution must indicate the date of entitlement and the date of distribution.
  • The Board must implement the General Assembly resolution with respect to dividend distribution to the registered shareholders within fifteen (15) days from the date they become entitled to such dividends as determined in such resolution, or the Board’s resolution for the distribution of interim dividends.

Paid Dividends

The following are the proposed dividends for the year 2021 compared to the dividends for the year 2020

2021
SAR Mn 		2020
SAR Mn
Distribution date Following AGM Approval 2 June 2021
Dividend per share (SAR) 3.00 1.00
Total proposed dividends (SAR) 360,000,000 (1) 1,120,000,000(2)

(1) On 5 March 2022, the Board of Directors recommended to the General Assembly to distribute cash dividends for fiscal year 2021 total amount of
SAR 360 Mn, equivalent of SAR 3 per share, representing 30% to the Share Par Value.

(2) On 28 June 2021G, the Ordinary General Assembly approved the distribution of special dividends to the Selling Shareholder (Public Investment Fund “PIF”) in the amount of one billion Saudi Riyals (SAR 1,000,000,000) from the balance of the retained earnings. This amount was due fifteen (15) days after the date of the meeting.