Translation: Record Date = Entitlement Date

This is the trading day a company sets to determine who is entitled to announced distributions or rights. Anyone who owns the share at the close of trading on that day is entitled, and their name is entered in the shareholder register at Edaa by the end of the second trading day afterward.

In simple terms:
Imagine an attendance list that closes at the end of trading on the entitlement date. If you join before it closes—even a day or an hour earlier—your name is on the list. If you join afterward, you’ve missed the distribution, and the dividends go to the person who sold you the share.

Note:
What matters is ownership at the close of the entitlement date, not when your name appears in the register. Dividends are not paid on this day; they are paid on the distribution date announced by the company.

Example:
A company announces a cash distribution. The entitlement date is Monday, November 16, 2026, and the payment date is November 25, 2026.

  • Mohammed bought shares on Sunday, November 15, the day before the entitlement date: He is entitled.
  • Sarah bought shares on Tuesday, November 17: She is not entitled. She joined after the list had closed.
  • Khalid bought shares on November 15 and sold them on November 17: He is entitled. He owned the shares at the close of the entitlement date, and selling them afterward does not cancel his entitlement.

All three will know where they stand by the end of Wednesday, November 18, when the ownership is recorded at Edaa. Mohammed and Khalid will receive the dividends on November 25.

What does this mean for you?

  • Before the entitlement date: Buying on any day up to and including the entitlement date gives you the distribution.
  • After the entitlement date: The share trades without the distribution, so its price tends to fall by an amount close to the distribution.
  • When selling: You can sell after the entitlement date without forfeiting your dividends.
  • When interpreting the price: Separate the effect of the distribution from market movements before assessing the share’s performance.

Frequently asked question: Why does a share price fall the day after the entitlement date?
Answer: Because a new buyer is no longer entitled to the distribution, so they do not pay for it. The value has not disappeared; it has shifted from the share price to the entitled shareholder’s account as cash. Market example: Al Rajhi Bank’s share closed at SAR 64.45, down 2%, after entering its ex-entitlement date. The bank had announced a cash distribution of SAR 1.26 per share for the first half of 2026.