Investment Policy Among Saudi Arabia Essay - 1027 Words

1.0. Abstract The research paper analyzes and critiques a number of literature materials on dividend policy among Saudi firms with much focus on non-financial firms. In Saudi Arabia, dividend policy is an imperative tool because most companies retain close to 100 percent of their earnings in dividends. In this economy, firms are majorly funded by bank loans and thereof, there exists no capital or income gains taxes. Some of the most identifiable factors influencing dividend policy of both non-financial and financial companies in Saudi are discussed in the current paper. The current paper is a report compiled to my firm’s manager’s to help him understand the strategic financial policies in relation to the real life specifically, concerning dividends policy in Saudi Arabia. In order to address all his interests in the topic, I have undertaken to divide the report into sections namely: abstract, introduction, literature review and conclusion. Key words: dividends, financial policies, Saudi Arabia 2.0. Introduction Dividend policy is a major financial decision that a company has to make in order for the shareholders to be rewarded for their investment in the business. It is one of the most predictable and stable element of a firm. Most firms commence dividend payment when the firm matures because at such a period, the firm receives fewer opportunities to invest into in order to raise their capital. It is, therefore, imperative for the management of the company to know predictShow MoreRelatedSaudi Arabi Oil And Natural Gas1749 Words   |  7 PagesQuestion One Saudi Arabia is the largest oil and natural gas producer of oil in the world attributed to its vast reservoir (Jasimuddin, 2001). The economic growth seen over the years has been dependent upon exploration and production of oil for local and international market (Jasimuddin, 2001). 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