Ooredoo board approves increase in target dividend payout range to 50%-70% of normalised net profit

30/10/2025 06:05 AST

Ooredoo Group's board of directors has approved the updated dividend policy to reflect a new target payout ratio range, increasing it from 40%-60% to 50%-70% of normalised net profit.

The revision underscores the group's strong financial position, consistent cash generation, and ongoing commitment to delivering greater value to its shareholders. The increased target reflects sustained business momentum, consistent cash generation, and the board's confidence in the company's strategy and value-creation potential.

Over the past three years, Ooredoo has consistently maintained a dividend payout ratio near the upper limit of its previous policy at approximately 60%. Consequently, the board conducted a comprehensive review of the existing dividend policy, carefully assessing the feasibility and implications of increasing the payout ratio. This review reaffirmed the group's strong financial position, characterised by healthy liquidity, low leverage and consistent earnings and cash flows.

The dividend policy, in effect since 2019 and upgraded effective October 29, 2025, aims to achieve a sustainable and progressive dividend distribution with a dividend payout ratio in the range of 50%-70% of normalised net profit.

Group chairman HE Sheikh Faisal bin Thani al-Thani said, "After a thorough board review, we are confident that our strong financial position, supported by solid liquidity, low leverage and sustainable cash flows, enables us to increase our payout ratio while maintaining the flexibility to invest in our future growth. This decision is a testament to the group's strong performance and our continued commitment to rewarding shareholders for their trust and support."

Group CEO Aziz Aluthman Fakhroo said, "Between 2020 and 2024, Ooredoo increased its annual dividend per share by 160%, highlighting the strong value delivered under our previous payout range. The enhanced payout range underscores our balanced approach to value creation, rewarding shareholders while ensuring sufficient capacity to invest in the company's growth."

Gulf Times