Saudi Enaya and Salama Merger Gains GAC Approval for Next Phase
The Kingdom of Saudi Arabia’s General Authority for Competition (GAC) has issued a “no objection” notice for the proposed merger between Salama Cooperative Insurance Company and Saudi Enaya Cooperative Insurance Company. This regulatory nod marks a pivotal step toward what could become one of the Kingdom’s most significant insurance sector consolidations.
Saudi Enaya and Salama Lay Foundation for Integration
In February 2025, Saudi Enaya and Salama initiated discussions by signing a non-binding memorandum of understanding (MoU). This agreement, though not legally binding, demonstrated both parties’ intent to explore synergies through a merger that could streamline operations, expand service portfolios, and enhance competitiveness within the growing Saudi insurance market.
While a final deal has not yet been struck, both companies affirmed their commitment to continuing merger evaluations. The process is now progressing into detailed due diligence, structured negotiations, and eventual shareholder and regulatory approvals.
GAC Approval Clears Initial Hurdle for Saudi Enaya-Salama Deal
The General Authority for Competition’s role in overseeing fair market conduct is critical in mergers of this scale. Although GAC’s “no objection” is not a formal merger approval, it signals that the planned union between Saudi Enaya and Salama does not violate Saudi competition law or present monopolistic risks.
This decision allows the companies to move forward with further steps, including seeking approvals from the Saudi Central Bank (SAMA), the Capital Market Authority (CMA), and convening extraordinary general meetings for shareholder endorsement.
GAC’s decision also reflects confidence that the merger won’t disrupt market competition. On the contrary, the deal may support a broader regulatory push toward industry consolidation.
Saudi Enaya and Salama Respond to Industry Consolidation Trends
Saudi Arabia’s insurance industry is rapidly evolving in alignment with Vision 2030, which emphasizes economic diversification and robust financial sector performance. The push for consolidation stems from the need for insurers to meet solvency requirements, improve service delivery, and remain resilient amid economic fluctuations.
Over the last few years, Saudi Arabia has seen increasing merger activity, with larger players acquiring smaller or specialized firms to achieve scale and innovation capacity. For Saudi Enaya and Salama, combining resources may significantly enhance competitiveness, allowing the new entity to offer a broader product portfolio, lower operational costs, and improve market reach.
The merged company would also benefit from a stronger capital base, facilitating the development of digital insurance services and tailored products to meet shifting customer expectations.
Profiles of Saudi Enaya and Salama: Strengths and Synergies
Saudi Enaya Cooperative Insurance Company is known for its strong focus on health insurance, catering to both individual and corporate clients. It enjoys a positive reputation for customer service and operates an extensive healthcare provider network.
Salama Cooperative Insurance Company offers a diversified range of services including general, health, property, and motor insurance. As a well-established name in both the retail and corporate insurance sectors, Salama brings significant market experience and product depth.
A successful merger would combine Saudi Enaya’s specialization in health coverage with Salama’s diverse portfolio, creating a comprehensive insurer with greater reach, scale, and service capability.
Next Steps: Regulatory and Shareholder Approvals Required
Despite GAC’s favorable stance, the merger still hinges on several important approvals:
Saudi Central Bank (SAMA): Approval is needed to confirm that the merged entity meets financial and operational regulatory standards.
Capital Market Authority (CMA): If public ownership or listing structures change, CMA approval becomes mandatory.
Shareholders of Saudi Enaya and Salama: Final agreement must be ratified by shareholders at extraordinary general meetings.
Both insurers have committed to providing timely updates as developments unfold. Meanwhile, stakeholders across the industry are watching closely for the potential ripple effects of this merger.
Saudi Enaya-Salama Merger Could Trigger Broader Sector Shifts
If completed, the union of Saudi Enaya and Salama may inspire similar mergers across the industry. The transaction sets a precedent for small and mid-sized insurers seeking sustainability through consolidation.
Saudi regulators have made it clear that they prefer a landscape of fewer but more resilient insurers. With rising climate-related risks, customer demand for digital services, and evolving regulatory demands, the need for technologically advanced and capital-strong insurers has never been greater.
Conclusion: Saudi Enaya and Salama Lead the Charge in Industry Evolution
The GAC’s approval marks a significant milestone in what may become a transformative moment for Saudi Arabia’s insurance landscape. The Saudi Enaya-Salama merger, if finalized, could redefine competitive dynamics and establish a stronger, more capable player in the market.
More than a business deal, this merger represents a strategic response to national economic goals, industry trends, and consumer needs. It reflects the rising importance of scale, digital innovation, and capital strength in shaping the future of insurance in the Kingdom.
As further regulatory reviews and shareholder votes approach, this merger stands out as one worth watching—both for its immediate impact and for the precedent it sets across the region.
