Alpha Dhabi Rolls Out AED 2 Billion Payout Plan With Share Buyback Programme

Alpha Dhabi Holding PJSC has unveiled a three-year dividend policy offering annual payouts of AED 2 billion, with a built-in 5 per cent increase each year starting from the 2025 financial year. The Abu Dhabi–listed investment house also proposed a share buyback scheme of up to AED 1 billion, capped at 10 per cent of its issued share capital.

The dividend plan is subject to approval by the board and shareholders at the company's next general assembly. If adopted, it would build on the AED 2 billion dividend distributed in December 2024 and signal a commitment to stable, growing returns for investors. The share repurchase programme will remain effective until 31 December 2026, provided it obtains clearance from the Securities and Commodities Authority and complies with disclosure rules of the Abu Dhabi Securities Exchange.

Chief Executive Officer Hamad Al Ameri said the initiative reflects“confidence in our current business, including our predictable cash-flow position, robust capital allocation as well as our optimism in our future growth prospects.” He noted that the combined dividend and buyback approach aims to reward shareholders while supporting the company's long-term expansion strategy.

Alpha Dhabi has emerged as one of the fastest-growing conglomerates in the MENA region, with diverse interests spanning construction, real estate, healthcare, energy, and services. Its newly announced payout strategy follows years of rapid expansion accompanied by efforts to streamline its portfolio and strengthen its balance sheet. Analysts have observed that while some metrics such as return on capital employed have weakened over recent years, the company has worked to reduce current liabilities and improve cash flow coverage.

Supporters of the policy argue that the guaranteed dividend, growing at a fixed rate, could enhance investor confidence, especially among income-seeking shareholders. The buyback plan could further lift shareholder value by reducing the share base and potentially supporting the share price.

Critics caution that while the payouts are sizeable, sustaining them depends on consistent cash flows and continued successful execution of the company's diversified investments. Given its past swings in capital employed and returns on capital, the firm will need to ensure operational discipline and transparency to meet market expectations.

Following the announcement, the share price of Alpha Dhabi climbed by 8.8 per cent, underlining investor appetite for the new distribution policy. Market observers note that this move may set a benchmark for other large UAE conglomerates, particularly as companies navigate global headwinds from interest rates, commodity cycles and shifting investment flows.

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