Salama to restructure its share capital

At a General Meeting held on 16 October 2025, the shareholders of Islamic Arab Insurance Company (Salama) approved a reduction in the company’s share capital.

Following the completion of this transaction, Salama will proceed with the issuance of mandatory convertible Sukuk (MCS) worth 175 million AED (47.6 million USD) to a group of strategic investors. These Sukuk (Islamic bonds) will be mandatorily converted into new shares.

This recapitalization aims to strengthen the company’s solvency and balance sheet, ensuring compliance with the capital requirements set by the Central Bank of the United Arab Emirates.

In the first half of 2025, Salama reported financial improvements, with equity reaching 351.84 million AED (95.8 million USD), a year-on-year increase of 5.2%. Net profit stood at 8.25 million AED (2.2 million USD), while Takaful revenue totaled 515.36 million AED (140.3 million USD).