Dubai International Financial Centre (DIFC), a prominent global financial center in the region, has granted a captive license to Saudi Arabian Mining Company (Ma’aden), which is the biggest multi-commodity mining and metals corporation in the Middle East and one of the top five mining companies in the world based on market capitalization.
Ma’aden currently has 17 mines and sites, and 6,000 direct employees, making it one of the world’s fastest-growing mining firms. The corporation is dedicated to ethical and sustainable operations and is working to develop the mining industry in accordance with Saudi Arabia’s Vision 2030.
Captive insurance, which is a risk financing mechanism, is used by the company to protect itself against potential losses. Under this arrangement, the insured establishes a licensed firm that offers insurance to its parent organization, bringing the risk in-house, according to Trade Arabia.
Chairman of Ma’aden Captive, Ma’aden Re Limited Yaser A Barri said: “We look forward to establishing our presence in DIFC with the new captive licence. The Center’s strategic location, modern business environment, and world-class services will support Ma’aden in achieving our growth strategy.”
Establishing a captive in DIFC gives Ma’aden a strategic location to convene board meetings, access the DIFC’s reinsurance market, and be close to its headquarters in Saudi Arabia.
DIFC provides an optimal environment for captives, allowing firms to take full control of their risks while gaining greater financial flexibility and protection.
DIFC Authority CEO Arif Amiri said: “As the region’s insurance hub, including captives, DIFC looks forward to supporting Ma’aden in achieving its growth goals and helping them better control risks and reduce costs.”
The DIFC’s captive licence will provide Ma’aden with financial, strategic, and operational advantages. By forming its own insurance company to protect against unique business risks, Ma’aden can manage difficult-to-insure risk exposures, cover gaps in its risk management programme, and capture profitable premiums that would otherwise be paid to commercial insurers, he added.
