Al-Muhafaza Education Company, listed on the Saudi Stock Exchange (Tadawul), announced the results of its Extraordinary General Assembly meeting, during which shareholders approved strategic measures reflecting the company's strong financial performance and future direction. The most significant decision was the approval of the Board of Directors' recommendation to distribute cash dividends of SAR 4 million for the fiscal year ending July 31, 2025.
Background on the education sector in Saudi Arabia and Vision 2030
This announcement comes at a time when the education sector in Saudi Arabia is undergoing a radical transformation within the framework of Vision 2030. The Vision aims to develop human capital and enhance private sector participation in providing educational services, opening up vast opportunities for specialized companies like Al-Muhafazah Education. The dividend distribution decisions are a positive indicator of the maturity and stability of companies operating in this vital sector, and their ability to generate profitable returns for investors, which encourages further local and foreign investment in the education sector.
Details of dividend distribution and financial decisions
According to the company's statement, dividends will be distributed at a rate of half a riyal (0.50) per share, representing 5% of the share's nominal value. The company clarified that dividend entitlement will be for shareholders registered in the company's records at the Securities Depository Center at the close of trading on the day of the General Assembly meeting. Dividend payments are scheduled to begin on Monday, February 16, 2026, through direct deposit into shareholders' investment accounts.
In addition to distributing dividends, the General Assembly approved all financial and administrative reports for the year ending July 31, 2025, including the Board of Directors' report, financial statements, and auditor's report. The Assembly also approved the discharge of the Board members from liability for the same period and the payment of a bonus of SAR 180,000 to each member.
Corporate governance and future directions
The General Assembly's decisions were not limited to financial matters; they also included strengthening the governance framework and defining the company's future direction. Shareholders approved authorizing the Board of Directors to distribute interim dividends on a semi-annual or quarterly basis for the upcoming fiscal year, providing greater flexibility in managing liquidity and rewarding shareholders regularly. Furthermore, RSM United Accountants was appointed as the company's external auditor for the fiscal year 2026, with fees of SAR 175,000.
The approvals also included several amendments to the company's articles of association, including those related to the company's objectives, the issuance and trading of shares, and the addition of new articles allowing the company to buy back its own shares and issue debt instruments and financing instruments. These are strategic steps aimed at enabling the company to capitalize on future financing and growth opportunities. The assembly also approved a number of transactions and contracts with related parties, confirming that they were conducted in accordance with prevailing commercial terms and without any favoritism.
