Saudi Arabia opens talks on a war risk insurance fund for Red Sea shipping

According to Donya-e-Eqtesad, reporting Monday, Shahrivar 2, 1405 (August 24, 2026) on a Financial Times report, Saudi Arabia has opened talks with insurance brokers in London to set up a state backed fund covering war risk insurance for ships operating in the region. Rising costs and shrinking insurance coverage, driven by escalating tensions and Yemeni force operations against Saudi Arabia, have turned the Red Sea port of Yanbu into a vital artery for the kingdom's oil exports, the report said.

Under one proposed version, the fund would provide up to 700 million Saudi riyals (about 186 million dollars) of coverage per covered incident, such as a ship seizure or missile strike, with reinsurers Saudi Re and Riyadh Re leading a group of underwriters. Talks are ongoing and may not result in a final agreement.