Doha, Qatar: Chief Executive Officer of Edaa Sheikh Saif bin Abdullah Al Thani said that the decision regulating dividend distribution on an interim basis quarterly, semi-annually, or annually lies with the shareholding companies listed on Qatar Stock Exchange (QSE) and the nature of their activities, and the approval is taken by shareholders at the general assembly meeting of these companies; expecting the new rules on dividend distribution will be reflected in liquidity levels in the Qatari financial market.
In exclusive statements to Qatar News Agency (QNA), Sheikh Saif bin Abdullah Al Thani explained that the interim dividend distribution would improve the image of the company and increase investors’ interest in buying its shares, thus injecting more liquidity into the financial market. He noted that one of the main roles of Edaa is to develop mechanisms and make them available to investors and companies, to benefit from them in a manner appropriate to the nature of their activity.
The CEO of Edaa indicated that the new controls announced by Qatar Financial Markets Authority (QFMA) represent part of many initiatives which ultimate goal is to improve investors experience, facilitate the operations taking place in the market, and raise the rating of the market. These measures are part of the initiatives included in the state’s Third Financial Sector Strategy, he added.
Sheikh Saif bin Abdullah Al Thani noted that the Third Financial Sector Strategy includes about 120 different initiatives aimed at developing the market, including the new controls for dividend distribution to shareholders, which were revealed by Qatar Financial Markets Authority.
He pointed out that the Governor of Qatar Central Bank (QCB) and Chairman of Qatar Financial Markets Authority H E Sheikh Bandar bin Mohammed bin Saoud Al Thani, through the Third Financial Sector Strategy launched by the QCB, aims to develop the financial sector in the state in a comprehensive manner, in a way that serves the national economy. He emphasised that the decision to distribute profits to shareholders through the company will facilitate procedures for shareholders and companies alike as the process takes place in one place, which results in faster, easier and more efficient dividend distribution for shareholders than the method followed during previous years.
Explaining the way by which Edaa deals with unclaimed dividends, the CEO said that companies will be responsible for the dividends distribution beginning in January 2024 as determined by the new controls.
Regarding the unclaimed dividends prior to the aforementioned date, Qatar Financial Markets Authority is developing mechanisms and legislation related to rights holders.
He continued that Edaa will try to reach the shareholder in various ways, and in the event that communication is impossible, the company will work with Qatar Financial Markets Authority to establish mechanisms and controls that determine the method of using the financial returns and the goals that serve the market in general, not Edaa.
Commenting on the progress made in the lending and borrowing application project that Edaa is developing, CEO Sheikh Saif bin Abdullah Al Thani said that Qatar Financial Markets Authority had approved it, and the legislation had been issued.
Edaa has completed the legislation, mechanisms, and procedures related to this project, and is waiting for the notification from QFMA to the market and companies, which is supposed to be in the next few days, he indicated. The new dividend distribution controls issued recently include transferring dividend to the investor’s bank account or his trading account at the brokerage company he deals with, or adding the dividend to the investors balance in Himyan Prepaid Card, based on the investors choice for collecting the due dividend.
