Dubai-listed Islamic insurance company Dar Al Takaful is set to complete the procedures for its merger with Abu Dhabi-based Watania this week, according to a disclosure. 

The proposed merger, which is expected to create one of the country’s largest takaful providers in terms of market share, has already fulfilled all the conditions required, given that no objections have been raised by Watania’s policyholders as of June 10. 

Dar Al Takaful is now in the process of completing the legal procedures with the Securities and Commodities Authority (SCA) to obtain the merger certificate, the company said in a filing on the Dubai Financial Market (DFM) on Monday. 

“It is expected to complete the merger procedures and the issuance of the merger certificate and the company’s capital increase on Friday, 17 June 2022,” the company said. 

As part of the merger, more than 110 million new Dar Al Takaful shares will be issued to Watania shareholders. With the deal, the Dubai insurer’s capital will increase to more than 260 million shares, while Watania shareholders will own 42.3 percent of Dar Al Takaful. 

The merger is part of a strategy to consolidate the UAE takaful market and build scale. 

(Reporting by Cleofe Maceda; editing by Seban Scaria )