UAE: Salama announces capital restructuring exercise
Source: Middle East Insurance Review | Dec 2025
Islamic Arab Insurance Company (Salama), one of the UAE’s leading takaful providers, has announced that its shareholders have approved a capital reduction and subsequent capital increase as part of a comprehensive plan to restore solvency and reinforce its financial position in line with regulatory requirements of the Central Bank of the UAE.
Salama plans to issue up to AED175m ($47.7m) in Mandatory Convertible Sukuk (MCS) through a special purpose vehicle. These sukuk will be later converted into new shares.
At a general assembly, shareholders voted in favour of reducing the company’s capital to offset accumulated losses and cancel treasury shares.
The new capital will strengthen Salama’s solvency position and ensure compliance with the capital requirements of the Central Bank of the UAE, while supporting its well-diversified portfolio across product lines and geographies, providing stability and multiple avenues for sustainable growth.
Salama’s accumulated losses amounted to AED440.3m as of 30 September 2025, lower than the AED443.9m as of 31 December 2024, according to its financial statements. Its issued capital stood at AED939.6m as of both dates. M