Muscat: Within the framework of the Financial Services Authority’s endeavors to support innovation in offering new insurance products that meet the needs of individuals and institutions in the various economic sectors, the FSA is organizing a workshop on the experience of the Kingdom of Saudi Arabia in the mandatory application of latent defects insurance, which relates to the real estate sector as it provides insurance coverage for construction works defects, which includes physical damage to buildings.

The workshop will be held next Wednesday, January 15, 2025, with the participation of representatives from government entities in Muscat Municipality, Dhofar Municipality, Musandam Municipality and other governorate municipalities affiliated with the Ministry of Interior, in addition to the participation of representatives of the Omani Real Estate Association and insurance companies.

The workshop comes within the FSA’s efforts to introduce this type of insurance products for the purposes of studying the extent of the local market’s need for it and determining its economic feasibility. The workshop aims to introducing the latent defects insurance policy for enterprises and to review its importance and application mechanisms, in addition to discussing its role in improving construction quality and protecting the rights of owners and investors.

It will also address the regulations and implementation methods approved by the competent authorities, while explaining the obligations of all parties of the insurance relationship under the policy. It will also discuss the challenges and solutions associated with implementing the policy. The event is scheduled to host an elite group of Saudi experts and specialists, who will share their practical experiences and review the best regional and international practices in implementing the policy.

It is worth noting that this type of insurance products is related to the real estate sector as it covers the defects related to construction works, which include physical damage to buildings such as building settlement, collapse, facade damage and structural damage, which the policy will cover for a period of 10 years after the completion of construction unless they are discovered during or before the completion of the project.

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