Islamic Arab Insurance Company

The Islamic Arab Insurance Company (SALAMA) will have its Board of Directors pass a resolution by circulation on November 24, 2025. The resolution will pertain to the reduction of share capital, the upcoming issuance of mandatory Convertible Sukuk (MCS), and general business-related matters of the company. This information was communicated by Ahmad Abdelrahim, Senior Manager of Legal & Compliance.

The document is prepared according to disclosure requirements for companies with shares listed on the market that have accumulated losses of 20% or more of their paid-up capital, as per the SCA Board of Directors’ Decision No. (32/R.M.) of 2019. The Islamic Arab Insurance Company – SALAMA reported accumulated losses amounting to AED 440,288,300, which is 46.86% of its paid-up capital, as of September 30, 2025. Key factors contributing to these losses include a provision of AED 288,467,043 taken in 2024 against 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 against the UAE Dirham and inflation in Egypt, and unrealized losses on shareholder investments totaling AED 71.2 million in 2023. Additionally, provisions of AED 12.01 million were made for credit losses on other investments and receivables, in line with IFRS 9.

Islamic Arab Insurance Company (SALAMA) reported its financial results for the first nine months of 2025, showing stable underlying profitability and a strengthened balance sheet. The company recorded a net profit of AED 11.1 million, down from AED 30.4 million the previous year, which included a one-time foreign exchange gain. Excluding this gain, the underlying net profit improved year-on-year. Comprehensive income increased to AED 16 million, driven by better investment performance and operational efficiency. Total liabilities decreased to AED 2.83 billion, while shareholders' equity rose to AED 302.2 million. Takaful revenue was AED 768.7 million, reflecting a focus on quality over volume. SALAMA plans a capital raise through a Mandatory Convertible Sukuk of up to AED 175 million. The company's leadership highlighted the success of its strategic transformation and commitment to long-term value creation.

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

The Islamic Arab Insurance Company (SALAMA) held a Board of Directors meeting on November 12, 2025. During the meeting, the Board approved the company's financial statement for the third quarter ending September 30, 2025. Additionally, an induction program for new Board Members was presented, aligning with corporate governance regulations. Regular matters and other business updates were also discussed. The communication was signed by Ahmad Abdelrahim, Senior Manager of Legal & Compliance.

A Board of Directors meeting for the Islamic Arab Insurance Company (SALAMA) is scheduled for Wednesday, November 12, 2025, at 3:00 PM. The agenda includes reviewing and approving the financial statements for the third quarter ending September 30, 2025, presenting an induction program for new Board members in line with corporate governance regulations, reviewing and approving the updated banking mandate, and reviewing and approving a Related Party Transaction in accordance with relevant federal laws and decisions.

The Islamic Arab Insurance Company (Salama) has appointed Essa Ali Bin Salem Al Zaabi as the new Chairman of the Board of Directors. This appointment is part of Salama's transformation and growth strategy, following shareholder approval of a recapitalization plan to enhance solvency and regulatory capital. Mr. Al Zaabi has over 20 years of leadership experience in both public and private sectors, with expertise in human capital development and institutional transformation. He aims to sustain underwriting performance and uphold service standards. Mohamed Ali Bouabane, Group CEO, expressed confidence in Mr. Al Zaabi's ability to strengthen Salama’s foundations and focus on profitable growth. Mr. Al Zaabi previously held senior roles at the Dubai Chamber of Commerce and Industry and other notable organizations. Salama is a leading Shariah-compliant Takaful solutions provider listed on the Dubai Financial Market.

The Islamic Arab Insurance Company PJSC has announced that its general assembly approved a special resolution to reduce and then increase the company's share capital. The capital reduction will decrease the issued share capital from AED 939,588,998 to AED 483,021,183, effective on December 8, 2025. This reduction involves eliminating accumulated losses and canceling certain shares. The board of directors has been authorized to take necessary actions to implement these changes, which have been presented to the general assembly and are based on the external auditor's report.