Salama Islamic's profit up

Dubai: Salama Islamic Arab Insurance Company, a leading Takaful and Re-Takaful company, recorded a provisional 2005 net profit of Dh110 million ($30.14 million), up from Dh3.599 million ($1 million) in 2004.

Shaikh Khalid Bin Zayed Bin Saqr Al Nahyan, Chairman of Salama Islamic Arab Insurance Company, described the increase as a remarkable business performance.

The net profit is forecast to quadruple by 2010.

"We are investing close to Dh1 billion in growing the company and are confident net profits will be higher in the coming years," said Al Nahyan.

Salama expects global demand for Takaful and Re-Takaful products and services to grow significantly over the next five years.

Market value is forecast to increase from $1.7 billion to between $7.5 billion and $10 billion.

Salama was listed on the Dubai Financial Market in October 2005, following the IPO, which helped raise the company's capital to Dh1 billion.

"Our strategy is to expand Salama's geographic reach and to diversify our income stream and product base," said Saleh Malaikah, CEO of the company.

"This is to place the company in a position to take advantage of the emerging opportunities in the Takaful and Re-Takaful markets," he said.

The company's final results will be published by the end of March 2006.

Salama also has six Takaful companies and provides services in 70 countries through Tunisia-headquartered BEST RE.