Subject to Board and General Assembly approval, the Company intends to adopt a semi-annual dividend distribution policy to pay dividends in cash after the Offering in October and April of each year. Under the dividend policy, the Group expects to pay a dividend amount of AED 800 million per annum over the next 3 years (through October 2025).
The expected dividend distribution policy payment schedule is set out below:
- October 2022: AED 200 million
- April 2023: AED 200 million
- October 2023: AED 400 million
- April 2024: AED 400 million
- October 2024: AED 400 million
- April 2025: AED 400 million
- October 2025: AED400 million
This dividend policy is designed to reflect the Group’s expectation of strong cash flow and expected long term earnings potential while allowing the Group to retain sufficient capital to fund ongoing operating requirements and continued investment for long term growth. It is subject to consideration of the Board in relation to the cash management requirements of the Group’s business for operating expenses, financing expenses, anticipated capital expenditures, as well as market conditions, the prevailing operating environment in the Group’s markets, and the Board’s outlook for the Group’s business.
The Company’s ability to pay dividends is dependent on a number of factors, including the availability of distributable reserves, its capital expenditure plans and other cash requirements in future periods, and there is no assurance that the Company will pay dividends or, if a dividend is paid, what the amount of such dividend will be. Any level or payment of dividends will depend on, among other things, future profits and the business plan of the Company, and would be at the discretion of the Board.