UAE’s largest fuel and convenience retailer, ADNOC Distribution, today announced that its shares have now been certified as Shari’a-compliant. The move is based on a recent screening assessment made by The Unified Committee of Islamic Banks for Shari’a Screening of Equities – UAE, according to a statement from the Abu Dhabi Securities Exchange (ADX)- listed company. With this certification, brokerage arms of Islamic banks will now be able to trade ADNOC Distribution shares.
ADNOC Distribution’s Acting Chief Executive Officer, Saeed Mubarak Al Rashdi, expressed the company’s delight on this major certification and said that this paves the way for shareholders “with a preference for Shari’a compliant stocks to invest in ADNOC Distribution generating a broader investor base and contributing to increased liquidity for our shares.”
ADNOC Distribution recently reported strong first half results, including a 4.3% year-on-year increase in net profit and a 21% year-on-year increase in free cash flow (EBITDA minus capital expenditures).
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In April 2019, ADNOC Distribution announced a new dividend policy, representing an increase of 63% in the annual dividend for 2019 (AED 2.39 billion) and 75% for 2020 (AED 2.57 billion) compared to 2018. The company expects to pay an interim dividend of AED 1.194 billion (half of the 2019 full year dividend) in October of this year, subject to board approval, according to the press release.
