Publicly listed companies Dar Al Takaful (DAT) and Watania have completed their merger, creating one of the region’s biggest Shariah-compliant insurance providers, and consolidating its shares on the Dubai Financial Market.
The merged company now has a total share capital of AED 260 million ($70.8 million), it said in a statement.
Watania, which was trading on the Abu Dhabi Securities Exchange, has delisted from the bourse. Its shareholders received 0.73 DAT shares forever Watania share they owned.
“I am thrilled that we have formally become one company with one purpose, one culture and one common vision for the future,” DAT chairman Ali Saeed bin Harmal Aldhaheri said in a statement, adding the merger reflects the UAE’s evolving Islamic insurance sector “away from fragmentation towards consolidation.”
He added: “DAT will focus on deepening our customer reach and activities across the UAE, while also seeking opportunities to take our expertise overseas, particularly into the fragmented GCC market.”
In a 2022 report by investment advisory firm Alpen Capital, the region’s insurance sector is likely to see “higher consolidation through increased M&A,” as smaller players increasingly struggle to keep up with regulatory changes and rising operating costs.
“Going forward, focus is likely to be directed towards value creating opportunities with larger players targeting small to mid-sized players as well as tech-enabled operators and aggregators,” Alpen Capital managing director Krishna Dhanak said.
The merged company will benefit from “significant cost and revenue synergies, reduced operating expenses, and better IT platforms to expand its product offerings,” it said in a release.
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