Arabian Shield began operations in 1998 when the company, at that time incorporated as a Bahraini Company, was represented in Saudi Arabia by an agent.

Application was made to incorporate a Saudi cooperative insurance company following the licensing and regulation of the insurance industry in Saudi Arabia.

Arabian Shield Cooperative Insurance Company was incorporated in May 2007 as a Saudi Joint Stock Company and was granted a license from SAMA in September 2007 to transact general and medical insurance business in Saudi Arabia. The business previously underwritten by the Bahraini company was transferred to Arabian Shield Cooperative Insurance Company which commenced operations on 1 January 2009.