Saudi Arabia to support Aramco dividend policy

2017-10-08 01:52:47

(MENAFN) Saudi Aramco investors will benefit from a generous bonus policy as well as provide the interests for investors along with the government, according to a report by S&P.

The rating agency noted that a reduction in income tax rates for the larger hydrocarbons producers earlier this year means that the government will be encouraged to push the national oil company to offer attractive dividends when it floats.

A plan to list Saudi Aramco in 2018 is heading in the right direction, the company's CEO confirmed this week.

"The government will now be incentivized to encourage Saudi Aramco to follow a generous dividend policy to compensate for the reduction in tax revenues", said S&P in a report declared the Kingdom's ratings said by S&P.

"In this way, the interests of investors and the government will be more aligned", it added.

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