Saudi Arabian Mining Company (Ma’aden), the largest multi-commodity mining and metals company in the Middle East – and based on market capitalisation, one of the top five mining companies globally – has been granted a captive license by Dubai International Financial Centre (DIFC).
Captive insurance is a risk financing mechanism in which a company is able to insure itself against potential 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.
With 17 mines and sites and 6,000 employees, Ma’aden is said to be among the world’s fastest-growing mining companies, and noted that it is committed to responsible and sustainable operations. Ma’aden is developing the mining industry in line with Saudi Arabia’s Vision 2030, a statement from the firm added.
“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,” said Yaser A Barri, chairman, Ma’aden Captive, Ma’aden Re Limited.
Establishing a captive in DIFC gives Ma’aden a strategic location to convene board meetings, access DIFC’s reinsurance market, and be close to its headquarters in Saudi Arabia.
In addition, DIFC is said to provide 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 added, “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.”
He added that DIFC’s captive license 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, the statement concluded.
