The Islamic Arab Insurance Company (Salama), listed on the Dubai Financial Market (DFM), has announced a capital restructuring plan aimed at strengthening its financial position. As part of the move, the Takaful provider will raise up to 175 million UAE dirhams ($48 million) through a Mandatory Convertible Sukuk (MCS) issuance following a capital reduction.
This decision comes after shareholders approved measures to offset accumulated losses and cancel treasury shares, helping the company restore solvency and improve its balance sheet. The restructuring reflects Salama’s effort to enhance financial sustainability and align with regulatory requirements.
Once the capital reduction and regulatory approvals are completed, Salama will move forward with the MCS issuance through a special purpose vehicle, targeting a select group of strategic investors. The company’s management believes this approach will support long-term stability and attract stronger institutional backing.
Salama currently holds a BBB- rating from S&P, with a developing outlook. Despite recent challenges, the insurer reported a net profit of AED 8.25 million for the first half of 2025, indicating continued operational resilience amid restructuring efforts.
