Ameen Al-Mallah, Chairman of the Board of Directors of Naqi Water Company
Naqi Water Co.’s major shareholders waiving part of their profits represents a source of strength and growth, with strategic effects expected to emerge over time, said ChairmanAmeen Al-Mallah. 
On his Snapchat account, Al-Mallah said waiving part of profits is the least that can be offered to shareholders who have placed their trust in the company, describing the decision as a natural one.
Responding to claims that the move could be followed by share sell-offs, Al-Mallah noted that the major shareholders had previously pledged not to dispose of their shares. The share price has not risen to levels that would encourage selling.
He added that at the time of the company’s initial public offering (IPO), AlJazira Capital was among the brokerages that valued the stock at SAR 84.
However, he requested that the shares be offered at a lower price of SAR 69, resulting in the company foregoing SAR 90 million at the offering.
The decision was based on the company’s view of the strength and quality of the water market and the ease with which the share price could double from the SAR 69 level, Al-Mallah said.
He added that market conditions have since changed, with the number of water companies rising significantly and competition intensifying, noting that Naqi Water has successfully navigated this competitive environment.
He explained that the company went through a severe crisis and suspended dividend distributions for nearly two and a half years, during which it settled all its obligations.
He also noted that the company is working on establishing a factory in Riyadh, while its poultry plant is close to starting production.
Al-Mallah added that bonuses distributed to members of the board of directors are modest despite the company achieving profits, noting that he has waived part of his own bonuses on more than one occasion.
He contrasted this with other companies that incur losses yet distribute board bonuses of up to SAR 10 million.
According to data available with Argaam, Naqi Water’s board of directors recommended on Monday the adoption of the company’s dividend distribution policy for the next three years.
The policy includes dividends of SAR 2 per share for 2026, SAR 3 per share for 2027, and SAR 4 per share for 2028.
The company received two letters on Tuesday from major shareholders Ameen Al-Mallah and Saqa United Group, stating their waiver of 50% of dividend distributions for 2026, 55% for 2027, and 60% for 2028.
In September, the company also received letters from the same shareholders confirming that they would not dispose of their shares—whether by sale, waiver, or transfer in any form—for a one-year period starting from the date of the letters.
Ameen Al-Mallah, Chairman of the Board of Directors of Naqi Water Company
Naqi Water Co.’s major shareholders waiving part of their profits represents a source of strength and growth, with strategic effects expected to emerge over time, said ChairmanAmeen Al-Mallah.
On his Snapchat account, Al-Mallah said waiving part of profits is the least that can be offered to shareholders who have placed their trust in the company, describing the decision as a natural one.
Responding to claims that the move could be followed by share sell-offs, Al-Mallah noted that the major shareholders had previously pledged not to dispose of their shares. The share price has not risen to levels that would encourage selling.
He added that at the time of the company’s initial public offering (IPO), AlJazira Capital was among the brokerages that valued the stock at SAR 84.
However, he requested that the shares be offered at a lower price of SAR 69, resulting in the company foregoing SAR 90 million at the offering.
The decision was based on the company’s view of the strength and quality of the water market and the ease with which the share price could double from the SAR 69 level, Al-Mallah said.
He added that market conditions have since changed, with the number of water companies rising significantly and competition intensifying, noting that Naqi Water has successfully navigated this competitive environment.
He explained that the company went through a severe crisis and suspended dividend distributions for nearly two and a half years, during which it settled all its obligations.
He also noted that the company is working on establishing a factory in Riyadh, while its poultry plant is close to starting production.
Al-Mallah added that bonuses distributed to members of the board of directors are modest despite the company achieving profits, noting that he has waived part of his own bonuses on more than one occasion.
He contrasted this with other companies that incur losses yet distribute board bonuses of up to SAR 10 million.
According to data available with Argaam, Naqi Water’s board of directors recommended on Monday the adoption of the company’s dividend distribution policy for the next three years.
The policy includes dividends of SAR 2 per share for 2026, SAR 3 per share for 2027, and SAR 4 per share for 2028.
The company received two letters on Tuesday from major shareholders Ameen Al-Mallah and Saqa United Group, stating their waiver of 50% of dividend distributions for 2026, 55% for 2027, and 60% for 2028.
In September, the company also received letters from the same shareholders confirming that they would not dispose of their shares—whether by sale, waiver, or transfer in any form—for a one-year period starting from the date of the letters.
