National Bonds, a leading UAE fund manager, is finalizing plans to introduce a new pension fund tailored for employers, as the UAE moves towards implementing a new regulatory framework for end-of-service benefits.
Mohammed Qasim Al Ali, Group CEO at National Bonds, stated, “We are awaiting regulatory approval from the Securities & Commodities Authority before the launch of our first pension fund. In the next 6 weeks, we should be in that position.”
The fund will target UAE-based employers to invest funds earmarked for their end-of-service schemes, providing clarity and transparency in gratuity planning. The transition from ‘defined benefit’ to ‘defined contribution’ will align the end-of-service payout with employee contributions.
National Bonds’ previous ‘Golden Pensions Plan’ attracted 34,000 employees, driving the company’s investment portfolio to Dh14 billion by 2023, with Dh6.4 billion from new sales.
Al Ali highlighted, “Regular savers showed increased discipline in monthly contributions, resulting in a 122 per cent increase in direct debits.”
National Bonds plans to introduce niche group schemes, catering to professionals like doctors, adapting to the evolving pension landscape in the UAE.
