The Company may pay dividends only as permitted by law and subject to consideration of its investment requirements, financial condition, including its level of indebtedness and liquidity requirements, and its results of operations.
The Board of Directors expects to maintain a flexible dividend policy with a view to balance between growth opportunities and availability of funds for dividend distribution.
The Board of Directors currently expects that in the next few years, reinvestment of cash surpluses in the business might be considered to have a better impact on long term shareholder value than their distribution as dividends.
There can be no assurance that any dividends will be paid in the future or as to the level of any such dividends. Because the year ended 31 December 2013 was the first year in which Emaar Misr made a profit, there is no meaningful information available to show the Company’s historical dividend policy. The declaration, amount and payment of dividends is determined, subject to the limitations set forth above, by an absolute majority vote of the shareholders represented at an ordinary general assembly meeting (OGM) of the Company, generally, but not necessarily, on the recommendation of the Board of Directors.
Future dividends will depend on the Company’s results of operations, financial position, dividends received from its subsidiaries and affiliates, cash requirements, legal reserve and minimum capital requirements, future prospects and other factors deemed relevant by the Board of Directors and the shareholders. Currently, the Company does not plan to pay dividends in the near term but may consider adopting a dividend policy in the future that would aim to provide investors with a dividend without compromising the Company’s growth strategy. After the Combined Offering, the Principal Shareholder will control the outcome of any shareholder vote regarding dividends.