Salama Gains Shareholder Approval For Strategic Investor Participation In Mandatory Convertible Sukuk

The Islamic Arab Insurance Company (SALAMA) confirmed that shareholders approved the participation of strategic investors in SALAMA’s Mandatory Convertible Sukuk issuance at the General Assembly Meeting on 30 January 2026. This approval forms a central part of SALAMA’s recapitalisation plan and supports its long-term business transformation strategy.

The strategic investors approved for participation in the Mandatory Convertible Sukuk are Eshraq Investments PJSC and Humana Holding Limited. Eshraq Investments PJSC is a public joint stock company based in Abu Dhabi and listed on the Abu Dhabi Securities Exchange, while Humana Holding Limited is an investment holding company established under Abu Dhabi Global Market regulations.

The authorisation of these investors follows an earlier restructuring roadmap. Shareholders had previously endorsed a wider capital restructuring framework at a General Assembly Meeting on 16 October 2025, following a circular issued on 19 September 2025. That framework underpins SALAMA’s turnaround agenda and outlines the capital structure supporting its multi-year growth plan.

The Mandatory Convertible Sukuk plays a central role in this framework. It is designed to reinforce SALAMA’s balance sheet and address recapitalisation requirements while supporting future expansion. The instrument converts into equity under specified terms, which aligns investor interests with SALAMA’s long-term performance and supports regulatory capital objectives for the insurance business.

The participation of Eshraq Investments PJSC and Humana Holding Limited signals a shared view on SALAMA’s future direction. Their involvement aligns with SALAMA’s objective of building a well-capitalised, nationally anchored insurance platform headquartered in Dubai. The company plans to prioritise sustainable growth, operational and customer service improvements, and disciplined regional expansion.

Essa Ali Bin Salem Alzaabi, Chairman of SALAMA’s Board, commented, "The participation of Eshraq Investments PJSC and Humana Holding Limited in SALAMA’s Mandatory Convertible Sukuk represents a significant vote of confidence in our strategy and future direction. These are long-term strategic investors who share our vision of building a resilient and competitive insurance group, rooted in Dubai and serving the wider region. Their support strengthens our capital base and enables continued investment in talent, infrastructure, governance, and market presence to deliver sustainable value for all stakeholders."

Mohamed Ali Bouabane, Group Chief Executive Officer of SALAMA, added, "The Mandatory Convertible Sukuk is a cornerstone of SALAMA’s recapitalisation and strategic reset. The participation of high-quality, long-term investors underscores the credibility of our transformation agenda and our ability to attract patient capital aligned with our vision. With a strengthened balance sheet, we are accelerating investments across our people, new technologies and digital platforms, brand, and distribution capabilities, while remaining disciplined and selective in pursuing future inorganic growth opportunities that enhance scale and profitability."

SALAMA’s management views the strengthened capital position as support for investments in governance, technology and human capital. The company aims to enhance its market presence from its Dubai base while targeting sustainable profitability. The approved Mandatory Convertible Sukuk participation marks a key step in implementing SALAMA’s multi-year recapitalisation and growth strategy.

With inputs from WAM