DIFC grants captive license to Maaden

Maaden headquarters

Saudi Arabian Mining Co. (Maaden) has been granted a captive license by Dubai International Financial Centre (DIFC), state-owned Emirates New Agency (WAM) reported.

The DIFC's captive license will provide Maaden with financial, strategic, and operational advantages. By forming its own insurance company to protect against unique business risks, Maaden 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, it added.

DIFC provides an optimal environment for captives, allowing firms to take full control of their risks, while gaining greater financial flexibility and protection.

Establishing a captive in DIFC gives Maaden a strategic location to convene board meetings, access the DIFC's reinsurance market, and be close to its headquarters in Saudi Arabia.

Captive insurance is a risk financing mechanism in which a company insures 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 organization.