In a move reflecting the strength of its financial position and the confidence of major national companies in its services, the United Cooperative Insurance Company announced the signing of an important and strategic contract with the Saudi Binladin Group Limited, to provide insurance coverage services for one of the most important national and Islamic projects.
In an official statement published on the Saudi Stock Exchange website “Tadawul”, the company revealed that the contract signed pertains to providing an insurance coverage policy for the engineering insurance product, specifically extending coverage for the “All Risks Contractors” product related to the Custodian of the Two Holy Mosques’ expansion project for the Holy Mosque in Mecca, a project that enjoys the direct attention and follow-up of the wise leadership due to its paramount importance in serving the guests of God.
Contract details and financial impact
Regarding the financial value and economic importance of this agreement, United Insurance explained that the contract value exceeds 20% of the company's total insurance premiums, based on the audited financial statements for the fiscal year 2024. This figure indicates the substantial size of the insurance policy and the pivotal role it will play in the company's portfolio.
The company stated that the contract is valid for one full calendar year, commencing on January 1, 2026. The company anticipates that this contract will have a positive and tangible impact on its financial results during the 2026 fiscal year, enhancing shareholder returns and supporting future growth plans.
The importance of the Grand Mosque expansion project
This contract comes in the context of the mega-projects that the Kingdom of Saudi Arabia is witnessing, as the expansion project of the Grand Mosque in Mecca (the third Saudi expansion) is the largest in the history of the Grand Mosque, and aims to increase the capacity of the mosque to receive the increasing numbers of pilgrims and Umrah performers, in line with the objectives of the Kingdom’s Vision 2030, which aspires to reach 30 million Umrah performers annually.
Insurance coverage for such large construction projects is a fundamental pillar to ensure the progress and continuity of work, as "contractors' all risks" insurance covers material damages that may occur to the project during implementation, in addition to civil liability towards third parties, thus providing a financial and operational safety net for the main contractor and for the project as a whole.
Insurance sector and infrastructure support
This collaboration between United Insurance and the Binladin Group reflects the integration between the financial and construction sectors in the Kingdom. The Saudi Binladin Group has a long and distinguished history of executing projects related to the Two Holy Mosques, and its selection of United Insurance underscores the Saudi insurance sector's ability to absorb significant risks and efficiently manage insurance portfolios for multi-billion-dollar projects.
In conclusion, this contract represents further evidence of the vitality of the Saudi economy and the accelerating pace of completion of major infrastructure projects, with the growing role of national insurance companies in protecting these gains and contributing to the stability of the business environment.
