Profits Represent 65% Increase Over Last Year’s

SALALMA” Islamic Arab Insurance Co. (IAIC), the largest Islamic insurance (takaful and retakaful) operator in the world, has achieved new record profits by the end of 2006.  The achieved profits represent a 65% increase over those of 2005. This was revealed in the profits disclosure statement submitted today to the Dubai Financial Markets.

It is worth noting that Saudi IAIC, a subsidiary of SALAMA, has obtained a license to commence operations in Saudi Arabia . The Royal Decree has been issued to incorporate the company and it is expected 40% of the company’s capital will be offered for subscription in Saudi Arabia during March 2007.

Sheikh Khalid Bin Sagr Al-Nahayan, Chairman of SALAMA commented: “Our company has presented a distinguished performance since its shares were listed for trade on the Dubai stock exchange one year ago. The remarkable success was not limited only to the launch of the first IPO, but we have also a 96% majority shareholding in the Takaful & Retakaful International Investment Co. (TARIIC) of Bahrain , and the total equity of BEST Re, the largest re-takaful company in the world. These steps have contributed to expanding our geographic presence to include North Africa, especially Egypt, Algeria, Senegal and Tunisia” and last but not lease Saudi Arabia where the IPO for Saudi IAIC is expect during next month, Allah willing.”

From his perspective, Dr. Saleh Malaikah, the Vice Chairman and CEO of SALAMA said: “We have been blessed by Allah to obtain distinguished results for the last two years due to the company’s operational and balanced investment portfolios. We have invested during the past period in establishing new companies such as Saudi IAIC and adding family takaful activities (life insurance) in UAE, Algeria, and the Senegal .

Malaikah added” “Saudi IAIC will contribute toward increasing SALAMA’s profits gradually and significantly. We expect strong growth during next year and following years. Based on the company’s ambitious expansion plans, we are preparing to open eight new branches during the next few months in addition to the existing six branches. We have also added medical insurance to our operations after having obtained a license from the Saudi Medical Insurance Board.

SALAMA expects substantial growth during the next five years in the global takaful and re-takaful industry which, currently, is valued at US$ 1.7 billion to reach US$ 7.5 to 10 billion, making it one of the fastest growing sectors of the financial services industry.

Dr. Malaikah explained: “We shall focus our efforts during the current year on the diversification of list of services through launching systems for medical takaful and family takaful in all markets where we operate, to position ourselves to take advantage of the growing available opportunities in the global markets. We have already started family and health takaful operations not only in the UAE but also in Algeria through the Algerian SALAMA subsidiary. Also Saudi IAIC has added health takaful to its activities in Saudi Arabia . Last but not least, a subsidiary has been set up in the Senegal to offer family takaful. This company is in addition to SOSAR which is also a subsidiary in the Senegal . We have also contributed towards raising the capital the Jordanian Islamic Insurance Co, a joint-stock company whose shares are traded in the Amman stock exchange, of whose capital SALAMA owns 15% . The company recently increase its capital by 100% to JOD 8 million.

SALAMA was listed on the Dubai stock exchange in September last year, which allowed raising the company’s paid capital to one billion dirham. SALAMA now includes under its umbrella six takaful companies that provide their services in 70 countries around the globe through Tunisia-based BEST Re which is the largest re-takaful company in the Islamic world. SALAMA acquired full ownership of BEST Re at the beginning of 2006 whose paid capital is US$ 100 million.