Ithmaar Holding, a Bahrain-based investment company listed on the Dubai Financial Market, has reported accumulated losses of $827.07m for Q2 2025, exceeding its paid-up capital by 109%, according to its latest disclosure submitted on August 3.
The update, filed in compliance with the UAE Securities and Commodities Authority’s (SCA) disclosure requirements, underscores the long-standing financial challenges faced by the company, with losses dating back to 2016. The accumulation of losses has been attributed primarily to impairment provisions from non-core investments following the global financial crisis, with further provisions recorded in 2018 due to the early adoption of FAS30—the AAOIFI equivalent of IFRS 9.
Since 2020, the company’s financial performance has fluctuated in response to global macroeconomic pressures, including the Covid-19 pandemic. While there were modest improvements in 2021 and 2024 due to net profits attributable to shareholders, losses in 2022 and 2023 contributed to the sustained erosion of shareholder equity.
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The company reported a slight improvement in 2025, reducing accumulated losses by $1.58m due to net profit. However, overall losses still stand at over 100% of paid-up capital, triggering enhanced disclosure and restructuring requirements under SCA rules.
To address this critical financial situation, Ithmaar Holding’s board has launched a series of initiatives. These include the potential sale and/or restructuring of non-core assets and a renewed focus on recovering financing exposures. These measures are currently under review and subject to regulatory approvals.
In March 2022, the Board convened an Extraordinary General Meeting to propose offsetting accumulated losses against share capital. This capital restructuring plan remains under consideration and will be presented to shareholders for approval at a later stage, pending further developments.
As the company works to restore financial health, it remains committed to keeping stakeholders informed of any material updates in line with regulatory obligations.
