The Islamic Arab Insurance Company, widely known as SALAMA, has made significant strides in its strategic direction following the recent General Assembly meeting. The assembly, held both physically and virtually, marked a pivotal moment for the company as it approved critical resolutions aimed at strengthening its financial standing.

With a quorum of 52.2909%, the meeting was chaired by Mr. Essa Ali Bin Salem Alzaabi. One of the key decisions made was the appointment of Mr. Ahmad Abdelrahim as Secretary of the General Assembly Meeting and Mr. Mohamed Shaaban from the Dubai Financial Market as Attendance Register and Vote Collector.

The highlight of the meeting was the approval of the issuance of Mandatory Convertible Sukuk (MCS), a strategic move designed to bolster the company's capital adequacy. This decision follows the capital reduction of the company and is subject to the approval of the UAE Central Bank and the final nod from the Capital Market Authority (CMA).

The issuance of MCS is in line with article 152 of the Federal Law No 32 of 2021 concerning Commercial Companies and the Corporate Governance Guide for Public Joint-Stock Companies. The company has meticulously outlined the benefits of this transaction in a shareholders' circular published on September 19, 2025.

Two significant participants in this MCS issuance are Eshraq Investment P.J.S.C. and Humana Holding Limited, both related parties to SALAMA. Each entity is set to subscribe to the MCS for an amount up to AED 175,000,000. This strategic participation underscores the confidence and support from key stakeholders in SALAMA's future growth trajectory.

From an investment perspective, SALAMA's move to issue MCS is a positive step towards restoring its capital adequacy, which is crucial for its long-term sustainability and growth. The involvement of substantial investors like Eshraq Investment and Humana Holding further solidifies the company's financial foundation.

Given these developments, potential investors might consider a 'buy' stance on SALAMA. The company's proactive approach to capital restructuring and the strategic involvement of key stakeholders indicate a promising outlook. However, as with any investment, it is essential to conduct thorough due diligence and consider market conditions.