Takaful Emarat, a Dubai Financial Market-listed, shariah-compliant life and health takaful provider, has invited shareholders to subscribe to its rights issue, which will increase its capital by Dh50 million ($13.6 million) initially. 

 

The firm's shareholders approved a capital raising of up to Dh100 million at its Extraordinary General Assembly Meeting held last year, said a statement.

 

Its existing shareholders are entitled to subscribe to one new share for every two shares held, at a price of Dh1 each, it said.

 

The rights issue will open on November 1 and will close on November 15. 

 

The subscription for the newly issued shares will open on November 9 and close on November 22.

 

The schedule for the subscription process as required by the law has been published and the firm has informed its shareholders through the news paper’s announcement on how to exercise their rights to subscribe for shares or trade the rights.

 

This is the first time a sharia-compliant insurance company in the UAE has issued rights that may be publicly traded on an exchange, said the statement.

 

The proceeds will be used to capitalise on the company’s recent restructuring under a new management team and its return to operating a profitable underwriting model. 

 

Building on this growth, the new capital will be used to strengthen Takaful Emarat’s back office function, grow and develop its distribution channels and sales network across the UAE in particular in the Northern Emirates, and invest in the company’s digital and interactive client service technologies to ensure optimal customer service and efficient policy management. 

 

In addition, the funds will be used to streamline Takaful Emarat´s investments, ensuring a more stable and predictable income and return on investment.

 

Wael Al-Sharif, chief executive officer, said: “As a business, we have been completely restructured over the last 24 months with a new management team on board with extensive insurance experience who are tasked with growing the business. 

 

"We have delivered significant progress to date from both a financial and customer acquisition perspective as we expand both our distribution channels and physical presence across the UAE.”

 

“From a market perspective, the Takaful industry is set to continue the double-digit growth it has experienced over the last decade with EY predicting global Takaful contributions will reach $20 billion by 2017 with significant opportunities here in the UAE and across the wider GCC.

 

“As we continue to invest in our business, we are now well positioned to continue our growth trajectory as we focus on delivering maximum value for our shareholders and investors.” - TradeArabia News Service