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Tam Development to buy back shares, pay SAR 2M dividend
Tam Development shareholders approved a SAR 2.05M dividend and a 10,000-share buyback, citing undervaluation. BDO appointed auditor for 2026.
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Tam Development shareholders approved a cash dividend of SAR 2.05 million for fiscal 2025 and authorized a share buyback of up to 10,000 treasury shares, the company said in a bourse filing.
The dividend works out to SAR 0.62 per share, or 6.2% of nominal value. Investors who owned stock at the close of trading on the meeting date are eligible. The payout is scheduled for July 7.
The company pushed back the distribution date after a board decision to align with Edaa, the Saudi securities depository, the filing said.
On the buyback, the board said the stock trades below its fair value. The purchase will be funded from internal cash or bank loans. Tam Development has 18 months to complete the buyback and can hold the shares as treasury for up to 10 years before disposing of them under statutory rules.
Shareholders also gave the board authority to pay interim dividends on a semi-annual or quarterly basis for the coming fiscal year. That gives the company more flexibility on returning capital to owners.
The meeting ratified several related-party contracts. Health insurance agreements with Bupa Arabia, valued at about SAR 1.97 million, involve Vice Chairman Ali Mohammed Saadi Shonimer and board member Abdullah Nadim Mohammed Elias, both of whom hold positions at Bupa. Transport service contracts with Careem, where Elias is a co-founder, were also approved. An investment partnership with Omq Systems for Artificial Intelligence, which involves Chief AI Officer Mazen Abdullah Mahi Melibari, was ratified as well. The company said none of the deals carried preferential terms and all followed standard procedures.
BDO was appointed as external auditor for fiscal 2026 and the first quarter of 2027, at a total fee of SAR 555,000.
Other items approved included a discharge of board members from liability for 2025, SAR 540,000 in total remuneration for non-executive directors, and permission for Chairman Omar Abdulrahman Al Jeraisy to engage in business activities that might compete with the company.
The company reminded non-resident foreign investors that dividends transferred through resident brokers are subject to a 5% withholding tax under Saudi law. Shareholders should ensure their bank details are linked to their investment portfolios to avoid delays.