Alpha Dhabi Holding has confirmed plans to adopt a new three-year dividend policy and a programme to buy back shares.

The proposed dividend policy, which aims for annual dividends of AED 2 billion ($544.6 million) and an annual increase of 5 %, is meant to reward shareholders and create sustainable value, the investment holding firm said on Monday.

As for the share buyback programme, the company is looking at acquiring up to AED 1 billion, not exceeding 10 % of its issued share capital.

The plans are still subject to approval by the company’s shareholders.

"This decision is based on our confidence in our current business, including our predictable cash flow position, robust capital allocation as well as our optimism in our future growth prospects," said Hamad Al Ameri, Managing Director and Group CEO of Alpha Dhabi Holding.

(Writing by Cleofe Maceda ; editing by Seban Scaria) seban.scaria@lseg.com