Buruj Shareholders Approve Landmark 2.42 Billion Dirham Dividend for H1 2025

UAE's Borouge Delivers $660M Interim Dividend as Petrochemicals Giant Eyes $60B International Expansion

Borouge PLC has approved a substantial $660 million interim dividend payout, signaling robust financial health ahead of its ambitious transformation into a $60 billion global petrochemicals powerhouse. The UAE-based company's strong first-half performance and aggressive expansion plans position it to become the world's fourth-largest polyolefin producer by 2026.

Strong Financial Performance Drives Shareholder Returns

Shareholders approved the AED 2.42 billion ($660 million) interim dividend during the August 29 general assembly meeting, equivalent to 8.1 fils per share. This payout reflects Borouge's exceptional first-half performance, driven by strong pricing premiums, disciplined cost management, and effective inventory sales strategies.

The company reaffirmed its commitment to distribute total dividends of 16.2 fils per share for 2025, up from 15.88 fils in 2024. The final tranche of 8.1 fils per share is expected to be paid in Q1 2026, maintaining the company's track record of consistent shareholder value creation.

Impressive Track Record Since IPO

Since its June 2022 initial public offering, Borouge has distributed an impressive AED 15.57 billion ($4.24 billion) in total dividends, delivering a 30% total return to investors. This performance places it among the top-performing IPOs in the Middle East's recent wave of public listings, alongside other regional champions like ADNOC Drilling and Fertiglobe.

Strategic Expansion Through Borouge 4 Project

The company's confidence in future prospects is evident in its capital allocation strategy. Borouge has repurchased 141 million shares under a buyback program approved in April, while simultaneously investing in major capacity expansion.

The flagship Borouge 4 project has exceeded 90% completion and will add 1.4 million tons of annual production capacity when operational by end-2026. This expansion represents a critical step in Borouge's evolution from a regional player to a global petrochemicals leader, particularly as demand for polyolefins continues growing across Asia and Africa.

Transformation Into Global Petrochemicals Powerhouse

The most significant development lies in Borouge's planned transformation into Borouge International Group, expected to complete in Q1 2026. This restructuring will create a $60 billion entity and establish Borouge as the world's fourth-largest polyolefin producer.

CEO Hazim Sultan Al Suwaidi emphasized the company's "strong track record of delivering robust and sustainable returns to shareholders," supported by operational excellence and disciplined cost management. The international group structure will likely provide greater access to global capital markets and enhanced operational flexibility across multiple jurisdictions.

Sustained Dividend Policy Through 2030

The new international entity plans to maintain minimum annual distributions of 16.2 fils per share through at least 2030, subject to regulatory approvals. This commitment provides investors with income visibility during a period of significant corporate transformation and capacity expansion.

Market Position and Investment Implications

Borouge's strategic positioning comes at an opportune time. Global polyolefin demand continues expanding, particularly in emerging markets where infrastructure development and consumer goods manufacturing drive consumption. The company's UAE base provides advantaged access to low-cost feedstock and strategic proximity to high-growth Asian markets.

For investors, Borouge represents a compelling combination of current income generation and long-term growth potential. The company's ability to maintain strong margins while expanding capacity suggests effective operational management and market positioning. However, success will ultimately depend on global economic conditions, oil price stability, and the company's ability to integrate its expanded operations efficiently.

The transformation timeline through 2026 positions Borouge to capitalize on the next phase of global petrochemicals demand growth, particularly as supply chain diversification trends favor Middle Eastern producers with competitive cost structures and strategic geographic positioning.