Tabreed Approves New Dividend Distribution Strategy
National Central Cooling Company (Tabreed) has announced a significant change in its dividend distribution strategy.
Summary
Tabreed's General Assembly has approved a resolution to amend its Articles of Association, allowing for more flexible dividend distribution, including quarterly and semi-annual payouts.
In a recent General Assembly meeting, National Central Cooling Company PJSC, commonly known as Tabreed, announced a pivotal change in its dividend distribution strategy. The shareholders approved a special resolution to amend Article 30 of the company's Articles of Association. This amendment introduces a new clause that allows for more flexible dividend distribution, including quarterly and semi-annual payouts, alongside the traditional annual dividends.
This strategic move is seen as a response to the evolving needs of the company's shareholders, offering them more frequent returns on their investments. The decision aligns with Tabreed's commitment to delivering value to its stakeholders while maintaining its robust financial health.
Founded in 1998 and headquartered in the United Arab Emirates, Tabreed has established itself as a leader in the district cooling industry within the GCC region. The company operates 83 plants across the GCC, providing energy-efficient and environmentally friendly cooling solutions to a wide range of clients, including government, commercial, and residential sectors.
The approval of this resolution empowers Tabreed's Board of Directors to implement these changes, potentially enhancing shareholder satisfaction and attracting new investors who value regular income streams. The flexibility to distribute dividends more frequently could also reflect positively on the company's stock performance, as it demonstrates Tabreed's confidence in its consistent operational cash flow.
However, investors should approach this development with a balanced perspective. While the prospect of more frequent dividends is appealing, it is crucial to consider the company's overall financial performance and market conditions. Tabreed's strategic focus on sustainable growth and operational efficiency will play a significant role in its ability to maintain these dividend distributions over the long term.
In conclusion, Tabreed's decision to amend its dividend distribution policy is a strategic move that aligns with its growth objectives and shareholder interests. For existing investors, this could be a positive signal to hold their positions, while potential investors might find this an attractive opportunity to consider buying into a company that is committed to regular returns.
Source
Summary
On 15 September 2025, a General Assembly meeting of the National Central Cooling Company PJSC ("Tabreed") was held. During this meeting, a special resolution was approved to amend Article 30 of the company's Articles of Association. The amendment involves adding a new paragraph that allows the company to distribute annual dividends based on the annual general assembly's resolution following the Board of Directors' recommendation. Additionally, the company may distribute quarterly or semi-annual dividends to shareholders from operating profits or other profits, as decided by the general assembly or the Board of Directors. The Board is authorized to adopt, make, and execute these decisions.
