Islamic Arab Insurance Company

Mr. Fadi Aboul Hosn, the Chief Financial Officer of Islamic Arab Insurance Company – SALAMA (PSC), has resigned for personal reasons. His last working day will be Thursday, November 20, 2025. He will continue to fulfill his duties and support a smooth transition. A new Chief Financial Officer will be appointed after receiving necessary regulatory approvals from the Central Bank of the UAE, in line with corporate governance standards for insurance companies. The Board of Directors appreciates Mr. Aboul Hosn's contributions and wishes him success in his future endeavors.

Salama, the Islamic Arab Insurance Company, has announced that nominations for its Board of Directors will be open from August 16 to August 26, 2025. Shareholders who meet the necessary conditions can apply for board membership by submitting a resume and specifying the type of membership they are seeking at the company's main office in Dubai. Five board members will be elected, and nominations will be open for ten days following the announcement, in line with relevant governance regulations. Candidates must comply with the conditions outlined in the Federal Decree-Law on commercial companies.

Salama, a regional Takaful provider, reported a strong financial performance for the first half of 2025, with a net profit of AED 8.25 million, largely driven by a profit of AED 7.86 million in the second quarter. The company's equity rose by 5.2% to AED 351.84 million, aided by improved profitability and a reduction in accumulated losses. Takaful revenue was AED 515.36 million, slightly down from the previous year. Cash reserves increased significantly, reflecting effective cash management, while Takaful service expenses were reduced, enhancing operational efficiency. Total comprehensive income improved to AED 19.57 million, compared to a loss in the same period in 2024. Salama's leadership highlighted the company's focus on strengthening its balance sheet, operational efficiency, and customer-centric initiatives, positioning it well for future growth.

The document is a compliance form prepared according to the SCA Board of Directors' Decision No. (32/R.M.) of 2019, which mandates that companies with shares listed on the market and accumulated losses amounting to 20% or more of their paid-up capital must comply with specific provisions. The Islamic Arab Insurance Company (SALAMA) has accumulated losses of AED 440,684,313, which is 46.90% of its paid-up capital, as of June 30, 2025. The losses are attributed to several factors: a provision of AED 288,467,043 in 2024 for qualified assets linked to ongoing litigation since 2019, a provision of AED 28.02 million in 2023 for an irrecoverable reinsurance share related to a large fire claim, a goodwill impairment of AED 49 million due to the devaluation of the Egyptian pound and inflation in Egypt, and 2023 profits affected by unrealized losses of AED 71.2 million on shareholder investments and provisions of AED 12.01 million for credit losses, in line with IFRS 9.

The document is a review report and interim condensed consolidated financial statements for Islamic Arab Insurance Co. (Salama) PJSC and its subsidiaries, dated 30 June 2025. The report is unaudited.

Salama has partnered with Policybazaar.ae to enhance access to Shariah-compliant life Takaful insurance solutions in the UAE. This collaboration aims to increase the availability of Salama’s life insurance products through Policybazaar.ae's digital platform, aligning with local regulations. The partnership seeks to expand Salama’s reach to customers interested in ethical and transparent financial protection. Salama's offerings, which include term protection and savings-linked plans, are now available on Policybazaar.ae. The collaboration is supported by educational content and product assistance, aiming to simplify life insurance decisions for UAE residents. This initiative emphasizes financial inclusion, digital innovation, and empowering families to secure their futures.

The Board of Directors of the Islamic Arab Insurance Company (SALAMA) has approved resolutions concerning the company's business affairs through circulation. This information is communicated to Mr. Hamed Ahmed Ali, the Chief Executive Officer of the Dubai Financial Market, by Motaz Kraishan, the Board Secretary.