In what promises to be a highly significant development in the GCC insurance market, Gulf Reinsurance Limited (Gulf Re), advised by Clyde & Co, has successfully obtained authorisation from the Dubai Financial Services Authority (DFSA) to undertake business as a new start-up reinsurer, in or from, the Dubai International Financial Centre (DIFC).
Gulf Re was formed to establish a major player in the Middle East reinsurance market by setting up a world class reinsurance company capitalised to US$400m, with an initial focus on developing reinsurance business in the Middle East region. Gulf Re is a joint venture between Arch Capital Group Ltd. (Arch), a major insurance and reinsurance company with group operations across the United States, Canada, Bermuda and Europe, and Gulf Investment Corporation (GIC), a pre-eminent financial institution established in November 1982, and owned in equal shares by the six member states of the Gulf Cooperation Council (GCC).
Clyde & Co advised shareholders on and during the process of establishment in the DIFC, as well as the members of the management team and the new company on its incorporation. The team selected to run Gulf Re are drawn from senior insurance professionals who have worked in the US and Europe, a number of whom also have significant Middle Eastern experience.
“This is a significant moment for the GCC insurance market as it moves to the next level of its development. As (re)insurance markets become increasingly global, Dubai is seeking to become the leading centre for the Middle East and south Asian region,” commented Wayne Jones, partner at Clyde & Co, who advised on the deal.
He continued, “Having a well-capitalised local reinsurer, with an excellent and experienced management team, whose primary focus is on the region, is a tremendous step in helping the market to move forward. The fact that it brings with its world class experience and expertise is great news for the DIFC and the region.”
Gail Norstrom, CEO of Gulf Re said: “We are excited about the challenge of building a Gulf-based reinsurer that will provide significant local capacity and expertise within the region. We are pleased and proud to have the backing of a global reinsurer, Arch Worldwide Reinsurance, and the local confidence of Gulf Investment Corporation as the investor in the region for this venture.”
The Clyde & Co team was led by Wayne Jones, a partner who heads up Clyde & Co’s insurance and reinsurance practice in the Middle East, and assisted on the authorisation and regulatory process by Caroline Jaffer. Other lawyers in the team dealt with corporate, intellectual property and employment issues and included Dubai-based associates David Moore, Ben Gillespie, Sara Khoja, and Lee Keane.
Notes to editors:
Middle East: Clyde & Co is the largest international law firm in the GCC with over 100 lawyers and paralegals in offices in Dubai and Abu Dhabi in the UAE, and in Doha, Qatar.
The firm, which has been ranked as the top law firm in the UAE for the fourth successive year by the international legal directory ‘Legal 500’, is one of the few law firms in the region with a ‘full service’ capability and has particular strengths in aerospace, banking & finance, cross-border trade & investment, intellectual property, international arbitration, trade disputes, mergers & acquisitions, corporate & commercial law, shipping, insurance, media & telecommunications, energy, capital markets, real estate & construction, and technology.
International offices: Clyde & Co is a leading international law firm with 18 offices and over 1,200 employees worldwide helping clients in over 120 countries break through the trade barrier. The firm has offices in Abu Dhabi, Caracas, Doha, Dubai, Guildford, Hong Kong, London, Moscow, Nantes, New York, Paris, Piraeus, Rio de Janeiro, San Francisco, Shanghai and Singapore and associate offices in Belgrade and St Petersburg. The firm also has an exclusive co-operation agreement with a major law office in Iraq.
