
Islamic Arab Insurance Resolves Accumulated Losses
Summary
Islamic Arab Insurance Company (Salama) has successfully resolved its accumulated losses, maintaining compliance with regulatory standards.Islamic Arab Insurance Company, also known as Salama, has announced that it has successfully addressed its accumulated losses, ensuring compliance with the regulatory requirements set by the Securities and Commodities Authority (SCA) in the United Arab Emirates. As of December 31, 2025, the company's accumulated losses amounted to AED 18,818,138, representing only 3.9% of its paid-up capital. This figure is well below the 20% threshold mandated by the SCA for companies listed on the market.
The accumulated losses primarily stemmed from non-recurring items experienced in the financial years 2023 and 2024. These included litigation provisions, reinsurance provisions, goodwill impairment, and investment losses. However, Salama has taken decisive steps to address these issues, ensuring they do not affect the company's ongoing performance.
Salama's proactive approach to managing its financial challenges demonstrates its commitment to maintaining a strong financial position and adhering to Islamic Shari’a principles in its operations. The company's ability to resolve its accumulated losses and remain compliant with regulatory standards is a positive sign for investors and stakeholders.
Given the company's successful resolution of its financial challenges and its adherence to regulatory requirements, investors may consider holding their shares in Salama. The company's efforts to address past issues and maintain compliance indicate a stable outlook for the future.



