Naqi Water Chairman says partial dividend waiver totals SAR 70M

In an interview with Argaam, Al-Mallah explained that this decision reflects the confidence of the company’s major shareholders in the business and its future.

The move aims to strengthen the financial position, support cash flexibility, and enable the company to expand and seize future investment opportunities, he said.

The cash surpluses resulting from this waiver will be directed toward enhancing liquidity and supporting future expansions, whether in current operations or new activities, thereby providing greater financial flexibility to address potential challenges without affecting the dividend policy.

Al-Mallah noted that the waiver contributes to boosting the company’s cash availability and retained earnings, which enhances financial strength and sustainability, with the possibility of reinvesting these amounts in projects with clear returns when suitable opportunities arise.

He noted that Naqi Water’s financial position is strong, with no outstanding loans following the full repayment of a 2025 loan.

The company also enjoys excellent liquidity and met most liabilities related to ongoing projects.

According to data available with Argaam, Naqi Water's board of directors recommended adopting the company's dividend distribution policy for the next three years.

The policy includes dividends of SAR 2 per share for 2026, SAR 3 per share for 2027 and SAR 4 per share for 2028.

The company received two letters from major shareholders, Al-Mallah and United Seqa Group, as they agreed to waive 50% of dividends in 2026, 55% in 2027, and 60% in 2028.