Salama Islamic Arab Insurance Company, a leading Shariah-compliant takaful provider, has announced the successful completion of its multi-year capital restructuring programme. The company said the initiative marks a major milestone in restoring its financial strength and positioning it for future growth.
Following the restructuring, Salama confirmed that its solvency position is now strong and fully compliant with Central Bank of the UAE requirements. This leaves the insurer well-capitalised to expand its underwriting operations across key business segments.
As part of the restructuring, the company carried out a capital reduction of AED 456 million (approximately $124.2 million) to eliminate accumulated losses and better align its equity with its underlying financial position. In addition, Salama resolved more than AED 420 million in legacy and non-admissible exposures, including disputed assets, historical impairments, and foreign exchange-related adjustments. These measures significantly strengthened the balance sheet and reduced financial volatility.
The overhaul also included the conversion of an AED 155 million mandatory convertible sukuk and the issuance of new shares. The sukuk was fully subscribed by institutional investors Eshraq Investments and Humana Holding Limited. Salama said these steps have helped reinforce its capital structure and improve long-term financial stability.
With the restructuring now complete, the company plans to restore underwriting capacity across its core segments, including Life & Wealth, Health, and Property & Casualty (P&C). It also aims to re-engage key distribution channels, strengthen corporate partnerships, and drive profitable growth. Enhancing claims services, operational efficiency, and customer experience will remain key priorities.
Chairman Essa Ali Bin Salem Alzaabi said the transformation restores the company’s financial strength and positions it for long-term sustainability. Group CEO Mohamed Ali Bouabane described the restructuring as a “decisive turning point,” adding that Salama now has the capital base and operational discipline needed to compete effectively.
Going forward, Salama will focus on disciplined underwriting, rebuilding distribution partnerships, and expanding its insurance offerings, with the aim of delivering sustainable value to shareholders.