Islamic Arab Insurance Company-Salama has activated a capital reduction on Dubai Financial Market, the Shariah-compliant insurer said in a statement lodged with the Dubai Financial Market.
The capital reduction of AED456,567,815 ($124.32m) is being or will be carried out as follows:
-
Last trading date before the reduction and price adjustment: 6 January 2026
-
Trading suspension date to execute the action: 7 & 8 January 2026
-
Start date of trading on the company shares after the reduction and price adjustment: 9 January 2026
-
Share capital before reduction: AED939,588,998
-
Share capital after reduction: AED483,021,183 AED456,567,815
-
Decrease percentage (including the treasury shares): 48.5923%
-
Decrease percentage (excluding the treasury shares): 47.6546%
At a general assembly held on 16 October 2025, shareholders approved the capital reduction to offset accumulated losses and cancel treasury shares. The company’s share capital is to be slashed by an aggregate amount of AED456,567,815 to be effected through the following measures:
-
the extinction of all the accumulated losses amounting to AED443,861,155 (through the cancellation, on a pro rata basis, of 439,737,326 shares and the utilisation of an amount of AED4,123,829 from the statutory reserve to offset the remaining portion of the accumulated losses); and
-
the cancellation of 16,830,489 treasury shares, as reflected in the audited financial statements of the company as of 31 December 2024,
The company said that it has met the requirements to reduce the capital with the Securities and Commodities Authority (SCA).
Following completion, Salama will proceed, through a special purpose vehicle, with the issuance of up to AED175m in Mandatory Convertible Sukuk (MCS) to a select group of strategic investors. The sukuk will be mandatorily converted/exchanged into new shares under the approved terms.