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Salama Islamic Arab Insurance Company Completes Major Restructuring

On April 27, 2026, Salama Islamic Arab Insurance Company PJSC, commonly known as SALAMA, announced the successful finalization of its comprehensive capital restructuring program. This marks a significant milestone in the company’s multi-year transformation journey back to financial robustness. As one of the prominent players in the Takaful insurance market, SALAMA has set a commendable precedent with its strategic financial maneuvers, which aim to enhance operational performance and position the company for future growth within the Shariah-compliant insurance sector.

Key Highlights of the Restructuring

In this ambitious restructuring effort, SALAMA undertook a capital reduction totaling AED 456 million, thereby eliminating its accumulated losses and realigning its equity to better mirror its economic standing. The strategic move has successfully restored the company’s solvency, bringing it to a level that fully complies with the requirements set by the Central Bank of the UAE (CBUAE).

In addition to the capital reduction, SALAMA has effectively resolved over AED 420 million in legacy and non-admissible assets. This entails disputed assets, historical impairments, and adjustments related to foreign exchange—strengthening the company’s balance sheet while mitigating volatility risks inherent in its previous operations.

Moreover, SALAMA completed this transformation through a process involving the conversion of an AED 155 million Mandatory Convertible Sukuk (MCS), alongside the issuance of new shares. This Shariah-compliant capital instrument has garnered significant interest from strategic institutional investors such as Eshraq Investments PJSC and Humana Holding Limited, which underscores the strong institutional confidence in SALAMA's validated direction.

Focus on Growth and Operational Excellence

With this solid capital base now firmly in place, SALAMA aims to refocus its efforts on several strategic objectives aimed at ensuring sustainable growth. The primary foci include:

• - A renewed commitment to enhance underwriting performance across its key business lines.
• - Reinforcing key distribution channels, which include strategic partnerships within the corporate sphere.
• - Driving profitable growth across its Life & Wealth, Health, and Property & Casualty insurance segments.
• - Upgrading claims service to elevate operational efficiency and enhance customer experience.

Essa Ali Bin Salem Alzaabi, Chairman of SALAMA, expressed his gratitude and emphasized that this successful restructuring reflects the Board's dedication to re-establishing the company's financial strength and long-term sustainability.

Meanwhile, Group CEO Mohamed Ali Bouabane highlighted that the restructuring marks a pivotal turning point for SALAMA, focusing on resolute actions to stabilize the financial foundation of the business. He stated, "We are now poised to compete effectively in the market with robust operational discipline whilst providing consistent underwriting performance across our fundamental businesses."

About SALAMA

Founded in 1979, SALAMA is recognized as one of the largest and oldest providers of Shariah-compliant Takaful solutions, proudly listed on the Dubai Financial Market. The company takes pride in a customer-centric approach and is committed to its Takaful principles, ensuring a range of competitive offerings in family, motor, general, and health insurance solutions tailored for both individual and corporate clients. Its established history and integrity reaffirm its position as the preferred Takaful provider in the UAE and beyond, with a robust network extending to subsidiaries and partners in regions like Egypt and Algeria.

Moving forward, SALAMA is well-positioned to leverage its revitalized financial standing to deliver lasting value to stakeholders while continuing to shape the future of Takaful insurance through innovative and customer-focused solutions.