Makkah Construction board recommends no dividends for short Hijri FY

Logo of Makkah Construction and Development Co.

Makkah Construction and Development Co.’s (MCDC) board of directors recommended, during its meeting on Dec. 15, not to distribute cash dividends for the fiscal year ended on Dhu al-Qidah 14, 1443 (the short Hijri year), according to a statement on Tadawul.

The decision aims to allow Makkah Construction to strengthen its financial position, as the profits achieved for a short period (six months and 14 days) due to the company’s shift from the Hijri fiscal year to the Gregorian.

Last June, Makkah Construction announced its intention to amend its fiscal year to follow Gregorian calendar, which ends Dec. 31, instead of Hijri year, which ends on Rabi Al Thani 30, according to data compiled by Argaam.

This included issuing the company's financial statements for the short Hijri fiscal year 1443/1444 AH, which begins on Jumada Al-Awwal 1, 1443 AH and ends on Dhul Qi'dah 14, 1443 AH.