By Andy Sambidge
World's largest Islamic insurer in move to boost its shares listed on Dubai bourse.
Dubai-based Islamic Arab Insurance Company (IAIC), also known as SALAMA, has won approval to buy back 10 percent of its shares in a move designed to boost its price.
The company, the world's biggest Islamic insurer with a capital of about 1.1 billion dirhams, was given the go-ahead by the Emirates Securities and Commodities Authority to embark on the buyback policy, according to a statement on the website of Dubai Financial Market.
At the close of trading on Thursday on the bourse, IAIC shares were worth 1.43 dirhams, up from an October 8 low of 1.10.
However, IAIC shares were trading at 4.28 dirhams on January 8, 2008.
Earlier this month, the UAE cabinet authorised the bourse regulator to ease restrictions on share buybacks in an effort to boost stocks after weeks of declines.
The move is meant to shore up share prices that have fallen due to negative sentiment from the global financial crisis rather than the fundamentals of listed companies.