The Dubai International Financial Center (DIFC) granted a restricted license to the Saudi Arabian Mining Company Ma'aden, which is one of the 5 largest mining companies in the world according to market value.
The restricted license issued by the Dubai International Financial Center will provide Ma’aden with many financial, strategic and operational advantages, through the establishment of a private insurance company that guarantees protection from risks related to the business of the facility, according to a press release.
This enables the company to manage and identify unexpected risks and ways to address them, and to cover the gaps that may be included in its risk management program, in addition to achieving financial savings from insurance premiums that would have gone to other insurance companies.
The establishment of a company listed in the DIFC would give Ma'aden a strategic location to hold meetings at the board level, as well as take advantage of the opportunities within the reinsurance market in the DIFC.
Restricted insurance is a financing mechanism against risks that companies take to prevent future losses. The concept is based on the company's initiative to establish a licensed insurance company that provides loss insurance services for the benefit of the parent company.
