Business
Salama Shareholders Approve Landmark Capital Restructuring to Strengthen Solvency and Regulatory Capital Position
Islamic Arab Insurance Company (Salama) (DFM: SALAMA), one of the UAE's leading Takaful providers, has announced that the Company's 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.
About this update from Islamic Arab Insurance Co. (salama)
[{"type":"list","items":[{"val":[{"type":"text","content":"Shareholders approve capital reduction to offset accumulated losses and cancel treasury shares during the General Assembly held on 16 October 2025","length":146,"tagName":"p"}]},{"val":[{"type":"text","content":"Following completion, and subject to final regulatory approvals, Salama will issue, through a special purpose vehicle, up to AED 175 million in Mandatory Convertible Sukuk (MCS) to a select group of strategic investors with confirmed participation interest","length":256,"tagName":"p"}]},{"val":[{"type":"text","content":"The recapitalisation will reinforce Salama's solvency, regulatory capital position and balance sheet strength in line with requirements of the Central Bank of the UAE","length":175,"tagName":"p"}]},{"val":[{"type":"text","content":"Strategic investors' participation reflects strong market confidence in Salama's fundamentals, governance and long-term stability","length":142,"tagName":"p"}]}],"tagName":"ul","bulletedList":true,"length":719,"olType":false},{"type":"text","content":"Dubai, UAE, Oct. 17, 2025 /PRNewswire/ -- Islamic Arab Insurance Company (Salama) (DFM: SALAMA), one of the UAE's leading Takaful providers, has announced that the Company's 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.","length":423,"tagName":"p"},{"type":"text","content":"At the General Assembly held on 16 October 2025, shareholders approved a capital reduction to offset accumulated losses and cancel treasury shares. Following completion and final approval by the Securities and Commodities Authority (SCA), Salama will proceed, through a special purpose vehicle, with the issuance of up to AED 175 million 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.","length":515,"tagName":"p"},{"type":"text","content":"This capital restructuring marks a critical milestone in Salama's ongoing efforts to reinforce solvency, ensure full regulatory compliance and provide a stable foundation for future operations.","length":197,"tagName":"p"},{"type":"text","conte...