Makkah Construction board recommends dividend freeze for 2020

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Makkah Construction and Development Co.’s board of directors recommended witholding dividends for the fiscal year ending 30/04/1442H (Dec. 15, 2020), the firm said in a statement to Tadawul today, March 9, 2021.

The decision came after the company failed to achieve profits in 2020, due to the repercussions of the coronavirus pandemic.

The recommendation will be presented in the next ordinary general assembly meeting (OGM) for approval.

Makkah Construction turned to a net loss after Zakat and tax of SAR 59 million in 2020, from a net profit of SAR 236 million in 2019, Argaam reported.

The company distributed cash dividend at 15%, or SAR 1.5 per share, in 2019, while it paid SAR 2/share dividend in 2018 and 2017. The firm paid SAR 2.5/share dividend in 2016 and 2015.