Salama Islamic Arab Insurance Co. - Comprehensive Analysis Report

Summary

Salama Islamic Arab Insurance Co. (Salama) is a prominent public shareholding company based in Dubai, UAE, established on April 29, 1979. With over 45 years of industry experience, it stands as one of the world's largest and oldest Takaful providers. Its mission is to deliver comprehensive and innovative Takaful solutions, safeguarding client interests, promoting financial stability, and contributing to the advancement of Islamic finance and ethical business practices. Salama envisions itself as the global preferred provider of Islamic insurance solutions, fostering financial security and well-being while rigorously adhering to Takaful principles. The company specializes in offering Shariah-compliant Takaful solutions to both individual and corporate clients.

1. Strategic Focus & Objectives

Core Objectives

Salama's strategic objectives are centered on achieving prudent growth, maintaining disciplined underwriting practices, and effectively resolving legacy balance sheet issues. The company aims to expand its Family and General Takaful offerings to address evolving customer needs. A key objective involves leveraging investment in IT and automation to streamline the customer journey and enhance the accessibility of its digital platform for both partners and clients. Salama emphasizes a steadfast customer-focused approach, placing clients and partners at the core of its operations, and remains deeply committed to its core values and Shariah principles.

Specialization Areas

The company's core expertise lies in providing Shariah-compliant Takaful solutions. Salama offers a diverse portfolio covering family, motor, general, and health Takaful. Its unique value proposition stems from its long-standing heritage as a Takaful provider, adherence to Islamic ethics, and a commitment to digital innovation to enhance service delivery.

Target Markets

Salama primarily targets both individual and corporate market segments. Its offerings are designed to cater to a broad spectrum of clients seeking Shariah-compliant insurance products, including low-salary band workers in the UAE through the Essential Benefit Plan. The company also aims to be a global provider of Islamic insurance solutions.

2. Financial Overview

Funding History

Salama Islamic Arab Insurance Co. is a publicly held entity, listed on the Dubai Financial Market (DFM) under the symbol SALAMA. As of February 13, 2026, its market capitalization was $98 million, with 483 million shares in circulation. The company's authorized and issued capital stood at AED 483,021,183, with a par value of 1.00 UAE Dirham per share. The paid-up capital is AED 939 million.

Financial Performance:
Fiscal Year Ended December 31, 2024:
Insurance Revenue: AED 1.046 billion
Net Profit: AED 24.6 million (a significant recovery from a loss of AED 139.3 million in 2023)
Earnings Per Share (EPS): AED 0.014 (improved from AED -0.161 in 2023)
Total Assets: AED 3,307 million
Total Liabilities: AED 2,973 million
Total Equity: AED 334 million
The company fully provisioned AED 288.5 million for the impairment of qualified assets, resulting in an unqualified "clean" auditor's opinion for 2024.
First Six Months of 2025 (H1 2025):
Net Profit: AED 8.25 million (with AED 7.86 million generated in Q2 2025)
Takaful Revenue: AED 515.36 million
Total Equity: Increased by 5.2% to AED 351.84 million (from AED 334.38 million at year-end 2024)
Bank Balances and Cash: Significantly improved to AED 214.44 million (from AED 148.77 million at year-end 2024)
Total Comprehensive Income: Improved to AED 19.57 million (compared to a loss of AED 19.7 million in H1 2024)
Preliminary Full Year Ended December 31, 2025:
Net Profit: AED 11.1 million
Underlying Year-on-Year Profit Growth: Approximately 147% (excluding a 2024 exceptional foreign exchange gain)
Credit Rating: Salama's long-term issuer credit and insurer financial strength rating was affirmed at 'BBB-' by S&P Global Ratings with a Developing outlook in August 2025, reflecting potential for sustainable progress.

3. Product Pipeline

Key Products/Services

Salama is dedicated to developing award-winning solutions to meet the evolving protection needs of individuals and corporate customers.
Diverse Takaful Solutions: Offers family, motor, general, and health Takaful products designed for both individual and corporate clients.
Essential Benefit Plan (EBP): As a Participating Insurer since 2022, Salama provides affordable healthcare coverage through the EBP for low-salary band workers in the UAE.
Digital Platform Investment: Continuous investment in its digital platform aims to enhance accessibility and streamline the customer journey across all product offerings.
Digital Life Insurance Penetration: Collaborates with partners like Policybazaar.ae to increase life insurance penetration through accessible digital channels.

4. Technology & Innovation

Technology Stack

Salama leverages significant investment in IT and automation to optimize the customer journey and operational efficiency.
Digital Platform: Features an advanced digital platform designed to enhance accessibility for both partners and clients.
Online Policy Issuance: Offers end-to-end online policy issuance capabilities, allowing customers to obtain instant quotes, purchase auto, health, and home insurance online, complete payments, and receive their policy within 10-15 minutes. This reflects a commitment to digital transformation, transparency, and accessibility.
IFRS 17 Compliance: The company utilizes various measurement models for Takaful contract liabilities, including the Premium Allocation Approach (PAA) model for general Takaful and short-term life contracts, and the General Measurement Model (GMM) and Variable Fee Approach (VFA) models for long-term life contracts, in compliance with IFRS 17 standards.

5. Leadership & Management

Executive Team

Mr. Essa Ali Bin Salem Alzaabi: Chairman
Mr. Fareed Lutfi Al Harmouzi: Vice Chairman
Mrs. Maha Abdul Majeed Al-Fahim: Board Member
Mr. Buti Abdulla Aljumairi: Board Member
Mr. Rashed Mohammed Abdulrahman: Board Member
Mr. Umair Nizami: Board Member
Mr. Parvaiz Siddiq: Board Member. Previously served as CEO, emphasizing a focus on customers and personalized, digital-driven solutions.
Mohamed Ali Bouabane: Group Chief Executive Officer. Focused on strengthening Salama's core business performance.

Recent Leadership Changes

Mohamed Ali Bouabane was appointed as the Group Chief Executive Officer of Salama, as reported in news related to Q3 2024 financial results. This appointment followed the previous tenure of Parvaiz Siddiq as CEO.

6. Talent and Growth Indicators

Hiring Trends and Workforce

Salama protects over 450,000 customers and provides more than AED 10 billion in insurance coverage. The company has an approximate employee count of 400. Salama is committed to empowering and nurturing local talent, aligning with the strategic objectives of the UAE. Its growth and expansion plans specifically include growing its Family and General Takaful segments, which will be supported by ongoing investments in IT and automation. This strategic direction indicates a focus on technology-driven growth and potentially new roles in digital and customer experience innovation.

7. Social Media Presence and Engagement

Digital Footprint

Salama Islamic Arab Insurance Company maintains an official website at https://salama.ae. The company's digital transformation efforts include a revamped website, reflecting enhanced transparency and accessibility for customers and partners. The website serves as a primary hub for information and online service delivery.

8. Recognition and Awards

Industry Recognition

Salama has garnered significant industry recognition and numerous awards for its customer focus, innovation, and excellence in the Takaful sector.
3rd place at Emirates Labour Market awards in the Financial and Insurance activities category, 2024.
Insurance Leader of the Year – Digital Insurance MENA, 2024.
Leadership in Shariah Compliant Financial Services – Global Islamic Fintech Forum, 2024.
Lifetime Achievement of the Year Award for CEO – Insurtech ME, 2024.
Best Family Takaful Company – Global Takaful Awards, 2024.
Best Takaful Provider – MEA Finance Industry Awards, 2023 & 2024.
Takaful Company of the Year at InsureTek Middle East, 2023.
Takaful Specialist at the Mena Insurance Awards, 2023.
"Takaful Company of the Year-2020" at the Middle East Insurance Industry Awards.
"Takaful Specialist of the Year" at the MENA Insurance Review Awards.
"Family Takaful Company of the Year-2015" award at the Middle East Insurance Awards.
"Best Family Takaful Operator ME – 2016" at the Islamic Banking and Finance Awards.
"Best Takaful Operator - 2019" by the Islamic Banking and Finance Awards.

9. Competitive Analysis

Major Competitors

Salama Islamic Arab Insurance Co. operates within the competitive UAE insurance sector, particularly as a leading Sharia-compliant Takaful provider.
Broader UAE Insurance Market Competitors:
ADNIC: A market leader, especially strong in corporate and health insurance lines.
Orient Insurance: Notable for its strong presence in motor and retail insurance segments.
Sukoon Insurance: A diversified insurer with a presence across the UAE and GCC region.
AXA/GIG Gulf: Offers international expertise, particularly in life and health insurance.
Specific Takaful Market Competitors:
Takaful Malaysia
Syarikat Takaful Malaysia Keluarga Berhad
Abu Dhabi National Takaful Co.
Qatar Islamic Insurance Company
Al Baraka Takaful
Takaful Emarat
Islamic Insurance Company

10. Market Analysis

Market Overview

The UAE's insurance sector is experiencing significant expansion, propelled by robust economic development, continuous population growth, and increasing public awareness regarding the benefits of insurance. The Takaful sector, a vital component of the UAE's insurance landscape, demonstrates sustained growth, driven by rising demand for Shariah-compliant products and higher motor insurance rates.

Globally, the Takaful market is experiencing rapid growth, fueled by increasing demand for Shariah-compliant financial products and expanding awareness of Islamic insurance solutions. Valued at USD 48.41 billion in 2024, the global Takaful market is projected to reach USD 230.03 billion by 2035, exhibiting an impressive compound annual growth rate (CAGR) of 15.22% during the 2025-2035 period. Key drivers contributing to this growth include the continuous expansion of the Islamic finance sector, rising Muslim populations, supportive government initiatives, favorable regulatory frameworks, and increasing consumer awareness of Takaful benefits. Additionally, digitalization and the widespread adoption of online platforms are profoundly contributing to market expansion by improving accessibility and enhancing customer engagement.

11. Strategic Partnerships

Salama has actively engaged in strategic collaborations to solidify its market position and expand its reach.
Policybazaar.ae: The company partnered with Policybazaar.ae to enhance life insurance penetration within the UAE through digital channels, making it more accessible to a wider audience.
* Abu Dhabi Residents Office: In the past, Salama collaborated with the Abu Dhabi Residents Office to provide Takaful healthcare services, demonstrating its commitment to community health initiatives.

12. Operational Insights

Salama's operational strategy is characterized by an unwavering commitment to Shariah compliance across all its products and services, meticulously overseen by its Shari'ah Supervisory Committee. The company champions a customer-centric approach, striving to deliver high-quality products, services, and best practices within the Takaful framework. This commitment is evidenced by its diverse range of Takaful solutions, including family, motor, general, and health insurance.

Operationally, Salama maintains a strong financial position, which instills confidence in clients regarding financial stability and the prompt settlement of claims. The company has made significant advancements in market penetration, leveraging digitalization and customer-centric innovation. This includes a revamped website and advanced digital capabilities for online policy issuance, enhancing efficiency and customer experience. Furthermore, Salama's selection as a "Participating Insurer" by the Dubai Health Authority (DHA) enables it to offer the "Essential Benefit Plan" (EBP) for low-income residents, highlighting its role as a socially responsible Takaful provider.