SALAMA Sets Conversion Price for Sukuk Exchange

The Islamic Arab Insurance Company, popularly known as SALAMA, recently issued a clarification regarding a significant decision made by its Board of Directors. The decision pertains to the conversion price of its Mandatory Convertible Sukuk (MCS) into new shares, which has been set at AED 0.46 per share. This announcement is a pivotal moment for the company as it navigates its financial restructuring efforts.

On November 24, 2025, the Board of Directors passed a resolution by circulation, which was later publicly disclosed. In a move to ensure transparency and clarity, SALAMA has reiterated the conversion price, which was calculated based on the total number of shares outstanding post the completion of a capital reduction process. This price was explicitly outlined in the shareholder circular presented during the general assembly meeting on October 16, 2025.

The decision to set the conversion price at AED 0.46 per share is strategic, aligning with the company’s broader financial objectives. By maintaining a conversion price within an acceptable range, SALAMA aims to stabilize its equity structure while providing clarity to investors and stakeholders.

From an investor's perspective, this move by SALAMA is indicative of a methodical approach to financial management, adhering to Islamic Shari’a principles. The company is poised to leverage this conversion to strengthen its capital base, potentially enhancing shareholder value in the long term.

Given the current financial landscape and the proactive measures undertaken by SALAMA, potential investors should consider the company's strategic direction. With the conversion price set, the company appears to be in a strong position to capitalize on future growth opportunities. Therefore, for existing shareholders and potential investors, the recommendation would be to hold their positions. This decision allows time to assess the impact of the capital restructuring and the company's performance in the coming quarters.