Dubai - Mubasher: Islamic Arab Insurance Company (Salama) has completed its capital restructuring program, marking the end of a multi-year transformation and restoring its financial strength.

Salama has re-established its solvency position to a strong and fully compliant level in line with the requirements of the Central Bank of the UAE (CBUAE), according to a press release.

As part of the restructuring process, Salama implemented an AED 456 million capital reduction to eliminate accumulated losses and align its equity base with its underlying economic position. 

Moreover, the company resolved more than AED 420 million of legacy and non-admissible exposures, including disputed assets, historical impairments, and foreign exchange-related adjustments.

These moves have significantly strengthened Salama’s balance sheet and reduced volatility.

The company emphasized that the improvement repositions it as a well-capitalized, growth-ready Takaful insurer with renewed underwriting capacity.

The transformation was completed through the conversion of an AED 155 million mandatory convertible Sukuk (MCS) and the issuance of new shares. 

The instrument was fully subscribed by strategic institutional investors Eshraq Investments and Humana Holding Limited, reflecting renewed investor confidence in Salama’s outlook.

Chairman of Salama, Essa Ali bin Salem Alzaabi, 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,” Alzaabi added.

Group CEO of Salama, Mohamed Ali Bouabane, stated: “The completion of our restructuring program marks a decisive turning point for Salama.”

“Today, Salama is a well-capitalised and compliant insurer, with the financial strength and operational discipline required to compete effectively,” the CEO added.

He noted: “Our focus now is on Salama- Public execution, delivering consistent underwriting performance, strengthening our market position and driving sustainable growth across our core businesses.”

The DFM-listed company is currently focused on reinstating underwriting capacity across core segments in addition to re-engaging key distribution channels and driving profitable growth across life & wealth, health, and property & casualty (P&C). It is also enhancing claims services, operational efficiency, and customer experience.