Abu Dhabi-based development firm Mubadala has set up a captive insurance vehicle in the Dubai International Finance Centre (DIFC), a source close to the company has confirmed.

“[Utilising a captive] is certainly something that is in the pipeline,” said a source close to Masdar, a future energy firm wholly owned by Mubadala. “So our parent company, Mubadala, has set up a captive in the DIFC.”

Masdar is currently developing the world’s first carbon-free residential city in Abu Dhabi.

The source confirmed that Masdar will use the captive to help manage risk management provision for its numerous development ventures in renewable and green energy sources in the UAE and other parts of the world, including the UK.

The news follows the confirmation to Captive Review in December 2009 by Ronny Vellekoop, senior executive officer and office manager for Marsh Management Services Dubai, that two captives – a PCC and a pure captive – were due to be launched in Q1 2010.

When asked about the Mubadala venture, Vellekoop said he was unable to comment.