Kingdom Holding, the investment company owned by the Saudi billionaire Prince Alwaleed bin Talal bin Abdulaziz Al Saud, plans to pay its first annual dividend of 550 million Saudi riyals (Dh538.7m) out of its accumulated cash reserves.
Prince Alwaleed announced yesterday he would forgo his own dividend payments to allow shareholders to receive a total payment of50 halalas per share over four quarters. "Today's announcement represents a milestone in the company's history. The continuity of our dividend distribution is part of Kingdom Holding's strategic plan," Prince Alwaleed said.
"It is based on our confidence that Kingdom Holding will continue to generate ample profits and cash to invest in the growth of our business and its commitment to continue to pay dividends in the future."Shares in the company, 95 per cent of which are owned by Prince Alwaleed, soared 6.4 per cent at one point in yesterday's trading to 8.30 riyals before closing at 8.25 riyals. Kingdom Holding, which has stakes in Citigroup, eBay, Disney and Apple, made a net profit of 160.1m riyals in the third quarter, up 52.6 per cent from the same period last year. Last month, the group announced it had invested US$500m (Dh1.83 billion) in General Motors' initial public offering.
John Sfakianakis, the chief economist at Banque Saudi Fransi, said the combination of a dividend and exposure to many of corporate America's strongest companies would make it an attractive stock to many investors.
"This is pretty substantial news for the company," he said.
ghunter@thenational.ae
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
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