DIFC Grants Captive Licence to Ma'aden to Support its GrowthPress Release 07 Mar 2023 02:28 pm
- Captive licence granted to Ma’aden, the largest multi-commodity mining and metals company in the Middle East, and among the fastest growing mining companies in the world
- Ma’aden’s vision is to be a sustainable mining champion with a global presence, and it is making efforts to implement a long-term growth strategy while making its operations sustainable
- DIFC provides an optimal platform for captive insurance companies, helping them take complete control of their risks while gaining greater financial flexibility and protection
- The licence will help Ma’aden manage retentions and deductibles associated with traditional risk transfer programmes and provide better protection against catastrophic losses and risks
Dubai, UAE; 7 March 2023: Dubai International Financial Centre (DIFC), the leading global financial centre in the Middle East, Africa, and South Asia (MEASA) region, has granted a captive licence to Ma’aden, the largest multi-commodity mining and metals company in the Middle East, and one of the top five largest mining companies in the world based on market capitalisation.
Ma’aden is among the fastest-growing mining companies in the world, with 17 mines and sites and 6,000 direct employees. Ma’aden is developing the mining industry in alignment with Saudi Arabia’s Vision 2030 and aims to be a role model in responsible and sustainable operations.
Captive insurance is a risk financing mechanism that a company uses 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.
The DIFC’s captive licence will provide Ma’aden with financial, strategic and operational benefits. 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.
DIFC provides an optimal environment for captives, helping firms take complete control of their risks while gaining greater financial flexibility and protection. Establishing a captive at DIFC gives Ma’aden a strategic location where it can convene board meetings, access the DIFC’s reinsurance market and which is close to its headquarters in Saudi Arabia.
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.”
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.”
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.”
– Arif Amiri, CEO of DIFC Authority