UAE’s National Bonds all set to launch pension fund ahead of new end-of-service benefit rules

UAE’s National Bonds all set to launch pension fund ahead of new end-of-service benefit rules

National Bonds is seeking competitive advantages by being one of the UAE asset managers to run its own pension fund program.

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Dubai: The UAE fund manager National Bonds is in the final stages of putting together a new pension fund targeted at employers. It comes as the UAE moves closer to creating a new framework for how funds collected as part of end-of-service payments are utilized.

“As one of the major asset managers in the UAE, we are best placed to oversee pension funds,” said Mohammed Qasim Al Ali, Group CEO at National Bonds. “We are awaiting approval from the regulator (Securities & Commodities Authority) before the launch of our first pension fund. In the next 6 weeks, we should be in that position.”

The National Bonds’ fund will tap UAE based employers to place monies that have been earmarked for their end-of-service – or gratuity – schemes.

“There are few UAE based asset managers who are in the pensions’ game,” said Al Ali. “As a company, a dedicated fund gives us some sizeable advantage.”

Currently, how employers manage their gratuity programs diverge wildly, depending on factors such as the size of the organization, their workforce numbers, cashflow coming