- AED456 M capital reduction and AED155 M mandatory convertible sukuk deliver full balance sheet reset
- Over AED420 M of legacy exposures resolved
With its capital restructuring complete, Salama Islamic Arab Insurance Company (SALAMA) is now positioned to deliver sustainable, long-term value to its
stakeholders. One of the world's leading composite shari'ah-compliant takaful providers, SALAMA announced in late April that it has concluded a multiyear transformation and re-established its financial strength.
SALAMA has restored its solvency position in line with the requirements of the Central Bank of the UAE (CBUAE), positioning the company as a well-capitalised, disciplined and growth-ready takaful insurer with renewed underwriting capacity.
The restructuring programme included an AED456 M capital reduction, eliminating accumulated losses and aligning the company's equity base with its underlying economic position. As part of this reset, SALAMA resolved over AED420 M of legacy and non-admissible exposures, including disputed assets, historical impairments, and foreign exchange-related adjustments, materially strengthening the balance sheet, and reducing volatility.
The transformation was completed through the successful conversion of an AED155 M mandatory convertible sukuk (MCS) and issuance of new shares, a shari'ah-compliant capital instrument fully-subscribed by strategic institutional investors Eshraq Investments and Humana Holding.
SALAMA is now focused on delivering disciplined underwriting performance and sustainable growth. The company is:
- Reinstating its underwriting capacity across its core business segments
- Re-engaging key distribution channels, including corporate partnerships
- Driving profitable growth across the life & wealth, property and casualty (P&C), and health sectors
- Enhancing its claims service, operational efficiency and customer experience
Essa Ali Bin Salem Alzaabi, Chairman of SALAMA said: "The successful completion of this transformation reflects the board's commitment to restoring the company's financial strength and long-term sustainability. With a fully reset balance sheet and strengthened capital position, SALAMA is now well positioned to pursue its strategic priorities with confidence and discipline."
Mohamed Ali Bouabane, Group CEO, SALAMA added: "The completion of our restructuring programme marks a decisive turning point for SALAMA. We have taken clear and disciplined actions to reset the balance sheet, resolve legacy exposures and re-establish a strong capital foundation for the business.
"Today, SALAMA is a well-capitalised and compliant insurer, with the financial strength and operational discipline required to compete effectively. Our focus now is on execution, delivering consistent underwriting performance, strengthening our market position and driving sustainable growth across our core businesses."








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