Adnoc Distribution's certification will enable the brokerage arms of Islamic banks to trade its shares
Adnoc Distribution’s shares have been certified as Shari’a-compliant following an assessment by the Unified Committee of Islamic Banks for Shari’a Screening of Equities – UAE.
The certification of Adnoc Distribution – the UAE’s largest fuel and convenience retailer in the UAE – will enable brokerage arms of Islamic banks to trade Adnoc Distribution shares.
“We are delighted our shares have been certified as Shari’a-compliant for the purpose of investment and trading,” said Saeed Mubarak Al Rashdhi, Adnoc Distribution’s acting CEO.
“This certification paves the way for existing and new shareholders with a preference for Shari’a-compliant stocks to invest in Adnoc Distribution generating a broad investor base and contributing to increased liquidity for our shares,” he added.
For H1 2019, Adnoc Distribution reported that its net profit rose 4.3 percent to AED 1.173 billion compared to the same time period in 2018.
Free cash flow – EBIDTA minus capital expenditures – rose 21 percent to AED 1.345 billion.
Additionally, the firm announced a new dividend policy, representing an increase of 63 percent in the annual dividend for 2018 (AED 2.29 billion) and 75 percent for 2020 (AED 2.57 billion) compared to 2018.
The company expects to pay an interim dividend of AED 1.194 billion, half of 2019’s full-year dividend, in October this year, subject to board approval.