Salama secures shareholder approval for strategic investors in mandatory convertible sukuk

Business

Salama secures shareholder approval for strategic investors in mandatory convertible sukuk

Islamic Arab Insurance Company (SALAMA) PJSC has received shareholder approval for the participation of strategic investors in its Mandatory Convertible Sukuk (MCS) issuance, strengthening the company’s capital base and supporting its long-term growth and transformation strategy.

Approved at the General Assembly Meeting held on 30 January 2026, the move marks a key milestone in SALAMA’s ongoing recapitalisation programme and multi-year plan to build a Dubai-headquartered national insurance champion.

Under the approved structure, Eshraq Investments PJSC and Humana Holding Limited will participate in the sukuk issuance, each subscribing for up to AED 175 million. The company said the participation signals strong institutional confidence in its turnaround roadmap and future direction.

The resolution follows an earlier shareholders’ circular issued in September 2025 and a General Assembly meeting in October 2025 that endorsed the broader capital restructuring framework supporting SALAMA’s recovery and expansion plans.

The two approved strategic participants include Eshraq Investments PJSC, listed on the Abu Dhabi Securities Exchange, and Humana Holding Limited, a private investment holding company incorporated in the Abu Dhabi Global Market.

SALAMA said the new strategic capital will help fund investments in talent, new technologies, digital platforms, infrastructure, brand development, and distribution capabilities, as well as support selective mergers and acquisitions aligned with profitability and scale objectives.

Essa Ali Bin Salem Alzaabi, Chairman of SALAMA, described the participation as a significant vote of confidence in the company’s strategy, adding that the investors share a long-term vision of building a resilient and competitive insurance platform rooted in Dubai and serving regional markets.

Mohamed Ali Bouabane, Group Chief Executive Officer of SALAMA, said the Mandatory Convertible Sukuk is a cornerstone of the company’s strategic reset, noting that the strengthened balance sheet will enable accelerated investment while maintaining a disciplined approach to future inorganic growth opportunities.