Dubai: Dubai International Financial Centre (DIFC) granted a captive licence to Saudi Arabia’s largest multi-commodity mining and metals company Ma’aden, the centre announced on Tuesday. Ma’aden operates 17 mines and sites and has 6,000 direct employees.
Captive insurance is a company’s risk financing mechanism to insure itself against future losses. In a captive insurance arrangement, the insured brings its risk in-house by creating a licensed company that provides insurance to its parent organisation.
DIFC’s captive licence will provide Ma’aden with financial, strategic and operational benefits. Arif Amiri, CEO of DIFC Authority, said: “As the region’s insurance hub, which includes captives, DIFC is looking forward to supporting Ma’aden in achieving its growth goals and helping them better control risks and reduce costs.”
By forming its own insurance company to protect against its 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.
Yaser A Barri, Chairman of Ma’aden Captive, Ma’aden Re Limited, said: “We look forward to establishing our presence in DIFC with the new captive licence. The centre’s strategic location, modern business environment, and world-class services will support Ma’aden in achieving our growth strategy.”
