Riyadh – Mubasher: Tam Development Company announced that its shareholders approved a cash dividend distribution for the 2025 fiscal year and authorized a strategic share buyback program, according to a bourse filing.
The extraordinary general meeting, held on 29 June 2026, resulted in the ratification of several key financial and operational resolutions, including the appointment of new external auditors and the approval of related-party transactions.
The assembly approved the Board of Directors' recommendation to distribute cash dividends totaling SAR 2.05 million for 2025.
This distribution equates to SAR 0.62 per share, representing 6.2% of the share’s nominal value.
Eligibility for these dividends is set for shareholders owning stock at the close of trading on the day of the assembly, with the disbursement scheduled to commence on 7 July 2026.
The company noted that the distribution date was adjusted following a board decision post-assembly to align with the regulatory schedules of the Securities Depository Center (Edaa).
In a significant move regarding capital management, shareholders authorized the company to purchase up to 10,000 of its own shares to be held as treasury shares.
The Board of Directors justified this buyback by stating that the current market price of the stock is below its fair value. The purchase will be funded through the company’s internal resources or bank facilities.
Tam Development is authorized to complete this buyback within 18 months and may hold these treasury shares for a maximum period of ten years before following statutory procedures for their eventual disposition.
The assembly also addressed governance and audit functions by appointing BDO as the company’s external auditor. BDO will be responsible for examining and auditing the financial statements for the 2026 fiscal year and the first quarter of 2027, for a total fee of SAR 555,000.
Furthermore, the board was granted authorization to distribute interim dividends on a semi-annual or quarterly basis for the 2026 fiscal year, providing the company with greater flexibility in shareholder returns.
Transparency regarding related-party transactions was a central theme of the meeting. Shareholders ratified several contracts involving board members, including health insurance agreements with Bupa Arabia valued at approximately SAR 1.97 million. These involve Vice Chairman Ali Mohammed Saadi Shonimer and board member Abdullah Nadim Mohammed Elias, both of whom hold positions at Bupa.
Additionally, transport service contracts with Careem, involving Elias as a co-founder, and an investment partnership with Omq Systems for Artificial Intelligence, involving Chief AI Officer Mazen Abdullah Mahi Melibari, were approved.
The company emphasized that all such transactions were conducted without preferential terms and followed standard regulatory procedures.
Other resolutions included the discharge of board members from liability for the 2025 fiscal year, the approval of SAR 540,000 in total remuneration for non-executive directors, and the approval of competition standards and criteria.
Shareholders also granted Chairman Omar Abdulrahman Al Jeraisy permission to engage in business activities that may compete with the company’s operations.
Regarding the dividend payout, the company reminded non-resident foreign investors that cash distributions transferred through resident financial brokers are subject to a 5% withholding tax in accordance with Saudi tax laws.
Shareholders were urged to ensure their bank account details are correctly linked to their investment portfolios to facilitate the seamless electronic transfer of funds.
