Gulf Pharmaceutical Industries (Julphar) overhauled its leadership and halted cash payouts to shareholders on Saturday. The major Emirati drugmaker held its Annual General Meeting to approve 2025 financial results and formally elect a new Board of Directors.
The aggressive retention of capital reflects a broader shift across the Gulf’s business sector. Regional manufacturing companies are hoarding cash to secure operational resilience and fund sudden expansions in a heavily disrupted global supply chain. Julphar is leaning into this strategy to protect its recent revenue jumps.
Record Profits and the Capital Gain Injection
The company reported an 8.4% increase in revenues from continuing operations. Total revenue reached AED 1,075.5 million for the year ending December 31, 2025. Net profit surged to AED 173.3 million.
The bottom line is a massive leap from the AED 44.9 million reported the previous year. A one-time exceptional capital gain of AED 111.2 million heavily drove this surge. Operating profit from continuing operations hit AED 43.9 million. EBITDA also saw a 22.2% rise, totaling AED 109.4 million.
Chairman Sheikh Saqr bin Humaid Al Qasimi and CEO Basel Ziyadeh addressed the assembly. They stated these figures validate the company’s strategic direction. According to a detailed report by Emarat Al Youm covering the AGM, leadership emphasized the strong financial position sets an optimistic outlook for 2026 and further regional expansion.
The General Assembly Dividend Decision
The General Assembly then made a polarizing decision regarding the profits. They officially approved a resolution to withhold cash dividends for the 2025 fiscal year, as confirmed by Argaam. The board opted to retain the capital.
They plan to maintain a solid financial foundation to fund future ambitions and operational resilience. The shareholders agreed with the board’s assessment to prioritize long-term liquidity over short-term payouts.
What the Zero-Dividend Policy Means for Julphar’s Regional Strategy
The decision to withhold payouts despite a record net profit marks a distinct paradigm shift for the drugmaker. The optics of a massive profit jump normally dictate a strong shareholder return. Stripping out the AED 111.2 million one-time capital gain reveals a much tighter core operational margin.
The newly elected board is choosing raw liquidity over immediate investor gratification. This retained capital directly arms Julphar against fluctuating regional production costs. It allows them to aggressively pursue their stated 2026 regional expansion without taking on expensive new debt.