Islamic Arab Insurance Company (Salama), a prominent Takaful provider in the UAE, has secured shareholder approval for a comprehensive capital restructuring plan aimed at restoring solvency and enhancing its financial standing. The decision, ratified during the General Assembly on October 16, 2025, includes a capital reduction to offset accumulated losses and the cancellation of treasury shares. Following final approval by the Securities and Commodities Authority (SCA), Salama will issue up to Dh175 million in Mandatory Convertible Sukuk (MCS) through a special purpose vehicle. These sukuk will be allocated to a select group of strategic investors and will be mandatorily converted into new shares under agreed terms. This move is a pivotal step in Salama’s strategy to ensure regulatory compliance, stabilize its financial foundation, and support future growth. Mohamed Ali Bouabane, Group CEO of Salama, emphasized that the restructuring underscores the company’s commitment to strengthening its balance sheet and meeting regulatory capital requirements. He highlighted the unwavering support of shareholders and investors as a testament to their confidence in Salama’s long-term stability. The company’s financial performance in the first half of 2025 reflects this progress, with total equity rising to Dh351.84 million, a 5.2% year-on-year increase, and a net profit of Dh8.25 million. Takaful revenue also reached Dh515.36 million, showcasing disciplined operations and improved profitability. S&P Global Ratings has affirmed Salama’s long-term issuer credit and insurer financial strength rating at ‘BBB-’ with a Developing outlook, further validating its improving fundamentals and capital position.