UAE: Salama to raise foreign ownership to maximum limit

Source: Middle East Insurance Review | Nov 2019

Islamic Arab Insurance Company (Salama) has plans to raise the foreign ownership limit of its shares to 49%, the maximum allowed under UAE law, said the company in a statement posted on the Dubai Financial Market.

The takaful operator is also reducing paid-up capital of AED1.21bn ($329.5m) to write off accumulated losses of AED394m. As a consequence, the paid-up capital of the company, as well as the number of issued shares will be reduced approximately by one third, which should reflect positively on the financial structure of the company and put it back on track towards dividend distribution.

The company said that even with the reduction of capital, it will continue to have a high and healthy solvency capital that exceeds the regulatory requirements.

Furthermore, the board of directors have also decided to cancel about 21.6m treasury shares bought 10 years ago to enhance the efficiency of its capital structure. M

AED1 = $0.27

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