Salama Islamic Arab Insurance Company PJSC, a leading Shariah-compliant Takaful provider, has announced the successful completion of its capital restructuring program. This marks the conclusion of a multi-year transformation aimed at restoring the company's financial strength and setting the stage for future growth.

The restructuring involved a significant AED 456 million capital reduction, which eliminated accumulated losses and realigned the company's equity base with its economic position. A key component of this transformation was the resolution of over AED 420 million in legacy exposures, including disputed assets and historical impairments. This move significantly strengthens Salama's balance sheet and reduces financial volatility.

The transformation was further bolstered by the successful conversion of an AED 155 million Mandatory Convertible Sukuk (MCS) and the issuance of new shares. This Shariah-compliant capital instrument was fully subscribed by strategic institutional investors, reinforcing strong institutional confidence in Salama's future trajectory.

With a reset balance sheet and strengthened capital position, Salama is now focused on executing its strategic priorities. The company plans to reinstate its underwriting capacity across core business segments, re-engage key distribution channels, and drive profitable growth in Life & Wealth, Health, and Property & Casualty (P&C) insurance. Additionally, Salama is committed to enhancing its claims service, operational efficiency, and customer experience.

Essa Ali Bin Salem Alzaabi, Chairman of Salama, expressed confidence in the company's renewed financial strength and long-term sustainability. Group CEO Mohamed Ali Bouabane highlighted the disciplined actions taken to reset the balance sheet and re-establish a strong capital foundation, positioning Salama as a well-capitalized and compliant insurer ready to compete effectively.

Given the successful restructuring and the company's strategic focus on growth and value creation, investors may find Salama's stock an attractive buy. The restored financial strength and clear growth strategy suggest a promising future for the company, making it a compelling option for investors seeking exposure to the Shariah-compliant insurance market.