Finance

UAE insurance firm Salama to raise up to $48mln in Mandatory Convertible Sukuk following capital reduction

Shareholders approve capital reduction to offset accumulated losses and cancel treasury shares.

The Islamic Arab Insurance Company (Salama), listed on the Dubai Financial Market (DFM), is undergoing a capital restructuring that will see the Takaful provider raise up to 175 million UAE dirhams ($48 million) through a Mandatory Convertible Sukuk issuance following a capital reduction.

The move is part of the company’s plan to restore solvency by offsetting accumulated losses and cancelling treasury shares.

Following completion and final approval by the Securities and Commodities Authority (SCA), Salama will proceed with the MCS through a special purpose vehicle to a select group of strategic investors.

Salama, rated BBB- by S&P with a developing outlook, posted a net profit of AED 8.25 million for H1 2025

© ZAWYA

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