JEDDAH: Some owners of warehouses are burning down their buildings so that they can claim insurance, according to an expert in the industry.

Louay Abdu told a local newspaper recently that some fires were “very deliberate. But in general the other reasons for such fires include workers smoking cigarettes during their rest hours inside the warehouses, poor storage mechanisms and buildings being used with little security and safety measures.”

Abdu said there tended to be more fires at warehouses in comparison to other businesses, which result in big payouts from insurance firms. This is why insurance companies require clients to have proper safety measures in place before contracts are signed.

He said some of the requirements include fire-extinguishing systems, either automatic or water hoses, in addition to alarms. However, he said that the Civil Defense often has to be called in because these systems do not work, posing a threat to nearby warehouses and businesses, particularly in informal areas.

Abdu said highly flammable goods such as clothing contain oil, which contributes to massive fires. Many warehouses also have auto spare parts that are often packaged in containers covered with petroleum products.

He said warehouses containing food record 100 percent losses most of the time because the smoke of a fire spoils the items, making them unfit for consumption. Many workers make the mistake of not removing food when there is a fire, he said.

Abdu said warehouse owners must make sure that facilities meet international specifications and standards, in addition to being about 50 square meters away from other buildings.

He said insurance experts have noticed several unsafe practices at warehouses, including workers smoking inside buildings. The Saudi Arabian Monetary Agency has made it mandatory for clauses in policies that take into account this behavior, which has reduced the number of fires at warehouses, he said.