#Dubai #UAE #Salama #Takaful

Overview of Salama's Performance in H1 2025

In a recent announcement, Salama (DFM: "SALAMA"), a key player in the Takaful industry, revealed its interim consolidated financial results for the first half of 2025. The company reported a commendable net profit of AED 8.25 million, bolstered by a striking performance in the second quarter where profits jumped to AED 7.86 million. This figure stands in sharp contrast to the previous year’s Q2 profit of AED 2.95 million, highlighting an impressive growth trajectory.

Financial Highlights

1. Net Profit and Revenue: Salama’s overall revenue from Takaful services in the first half was AED 515.36 million, compared to AED 528.59 million in the same period of 2024. While the decrease in revenue may seem concerning, the sharp increase in profitability signals a move towards operational efficiency and effective cost management.

2. Equity and Financial Stability: The company recorded a 5.2% increase in total equity, reaching AED 351.84 million as of June 30, 2025. This rise is attributed to ongoing profit generation and a notable reduction in accumulated losses, which decreased to AED 440.68 million, down from AED 443.86 million at the end of 2024. The improvement in bank balances and cash holdings to AED 214.44 million from AED 148.77 million demonstrates robust cash management practices.

3. Comprehensive Income: Salama further enhanced its financial standing with total comprehensive income climbing to AED 19.57 million, bouncing back from a loss of AED 19.7 million experienced during the same period in 2024. This turnaround is indicative of improving economic conditions across its key markets, along with favorable foreign currency adjustments reported at the subsidiary level.

Leadership Insights

H.E. Fahad AlQassim, Chairman of Salama, expressed positive sentiments about the company's progress. He noted, “Our improved equity, enhanced liquidity, and better solvency reflect our resilience in the first half of 2025. We are focused on strengthening our balance sheet as we embark on the next phase of growth. Our initiatives are geared towards building a foundation that supports economic growth and empowers our customers.”

Mohamed Ali Boubane, Salama’s Group CEO, echoed these sentiments, stating, “The strong performance in the second quarter has significantly contributed to our profitability for H1 2025. Our commitment to operational efficiency and financial prudence is evidenced by our growing cash reserves. We aim to innovate our Takaful offerings, upholding our commitment to our policyholders and stakeholders, positioning us for sustained growth.”

Commitment to Takaful Solutions

As one of the longest-established Takaful providers globally, Salama is dedicated to broadening access to Shariah-compliant insurance solutions in the region, thus creating lasting value for its customers. Recently, Salama has taken significant steps to enhance life insurance penetration in the UAE by collaborating with digital platforms such as Policybazaar.ae.

Credit Ratings and Industry Standing

Salama's financial stability and operational soundness have been recognized by SP Global Ratings, which affirmed the company’s long-term issuer credit and insurer financial strength rating at 'BBB-' with a Developing outlook. This recognition underscores Salama's commitment to maintaining high standards of financial management and customer service.

Conclusion

With a robust financial performance in H1 2025 and a strategic focus on efficiency and customer-centric service delivery, Salama is well-positioned to navigate the future challenges of the market. As it seeks to strengthen its footprint in the Takaful industry, the company remains committed to shaping a better tomorrow in line with its vision and customer expectations. Salama continues to champion the growth of Shariah-compliant financial solutions, fostering greater economic development within the UAE and beyond.