SALAMA is the largest Sharia-compliant insurer in the United Arab Emirates (UAE), with robust capital adequacy and liquidity. Nevertheless, its high exposure to speculative-grade bonds and deposits exerts pressure on its risk profile. We are raising our ratings on SALAMA to 'BBB' from 'BBB-'. The stable outlook reflects our view that SALAMA will continue to improve its operating performance while maintaining its capital adequacy and liquidity levels. On July 18, 2019, S&P Global Ratings raised to 'BBB' from 'BBB-' its insurer financial strength and issuer credit ratings on UAE-based Salama/Islamic Arab Insurance Co. (P.S.C.). The outlook is stable. This rating action follows a review of SALAMA under our revised criteria ("Criteria Insurance General: Insurers Rating Methodology," published July
