RIYADH: Saudi mining giant Ma’aden has received a captive license from the Dubai International Financial Center to help the multi-commodity firm manage risks and protect itself against potential losses.
The move will allow Ma’aden to create its insurance firm to guard against unique business risks while managing difficult-to-insure risk exposures and filling any gaps in its risk management program.
“We look forward to establishing our presence in DIFC with the new captive license. The center’s strategic location, modern business environment, and world-class services will support Ma’aden in achieving our growth strategy,” said Yaser A. Barri, chairman of Ma’aden Captive at Ma’aden Re Limited.
The insured firm in a captive insurance arrangement brings its risk in-house by forming a licensed firm that offers insurance to its parent group.
The company will be able to recover profitable premiums that would otherwise be paid to commercial insurers.
Ma’aden will benefit financially, strategically, and operationally from the financial hub’s captive license, stated DIFC.
By establishing a captive in the DIFC, the company will gain a strategic location for board meetings, access to the DIFC’s reinsurance market, and proximity to its Saudi Arabia headquarters.
“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,” said Arif Amiri, CEO of DIFC Authority.
Ma’aden is one of the world’s fastest-growing mining corporations, running 17 mines and sites with 6,000 direct employees, and exports goods to more than 30 countries.
The mining company aims to lead responsible and sustainable business operations as it develops the mining sector in line with the Kingdom’s Vision 2030.
It also signed two major agreements with Saudi Arabia’s Shareek program and Saudi’s Ministry of Investment to accelerate the growth of the Kingdom’s mining industry.