The board of directors of Naqi Water Company, one of the leading companies in the bottled water sector in the Kingdom of Saudi Arabia, announced its recommendation to adopt a new and clear dividend distribution policy for the next three years, in a strategic step that reflects the high confidence in the company’s future financial performance and its firm commitment to enhancing the investment value for shareholders.
This recommendation comes amidst the continued growth of the consumer goods sector in the Kingdom, driven by population increase and a growing awareness of the importance of drinking water quality. Naqi Water Company is a key player in this vital market, continuously striving to expand its production operations and strengthen its market share. Adopting a transparent and long-term dividend policy not only rewards existing investors but also sends a strong message to financial markets about the company's financial stability and its ability to generate sustainable cash flows.
According to the official statement published on the Saudi Stock Exchange (Tadawul) platform, this policy will be presented to the upcoming General Assembly for approval and adoption. The proposed policy includes increasing cash distributions over the next three years, starting in 2026 and ending in 2028, as follows:
- Fiscal year 2026: Distribution of 2 riyals per share, which represents 20% of the nominal value of the share.
- Fiscal year 2027: Distribution of 3 riyals per share, which represents 30% of the nominal value of the share.
- Fiscal year 2028: Distribution of 4 riyals per share, which represents 40% of the nominal value of the share.
The company clarified that dividends will be distributed semi-annually, subject to approval by the Board of Directors' General Assembly. This policy is scheduled to take effect with the first half of 2026.
Importance and expected impact
Domestically, this policy is expected to boost investor confidence in Naqi Water's stock, potentially impacting its performance on the Saudi Stock Exchange. Investors, both individuals and institutions, prefer companies that offer a clear vision of their future returns. This recommendation also underscores the Board of Directors' commitment to the principles of good governance and transparency, essential factors for attracting investment within the framework of the Kingdom's Vision 2030, which aims to develop an advanced and open financial market. Regionally and internationally, such announcements contribute to solidifying the Saudi Stock Exchange's reputation as one of the most mature markets in the region, where stable dividend policies are a key indicator of a company's operational health and its capacity for long-term financial planning.
However, the company confirmed that this policy is subject to review and change in the event of material developments affecting its overall strategy, regulatory requirements, financial commitments, or future investment plans and projects, thus ensuring the necessary flexibility to adapt to market changes.
