National Bonds, the UAE Shari'a-compliant savings and investment company owned by the Investment Corporation of Dubai, has launched what it claims is the first-of-its-kind Golden Pension Scheme in the UAE in a move to ramp up its suite of financial planning solutions for nationals and residents. 

In a statement on 11 October, it said the scheme, which is targeted towards 89% of the UAE's population that are expats, "will help employees of registered corporates get a head start in retirement planning and strengthen their financial resilience through the attractive competitive returns being offered by National Bonds under this program".

As per the terms of the new proposition, employees have the flexibility to contribute as little as AED 100 on a monthly basis and earn a profit on the amount saved, which can be availed in addition to the earned gratuity provided by their organization. The scheme aims to support organizations with their employee retention efforts as well as help them plan ahead for the end-of-service financials.

Through National Bonds' easy-to-use mobile application, employees will have visibility to their pension portfolio and can view their savings grow in real-time. Moreover, they can also be part of the National Bonds' rich rewards program of AED 35 million and are eligible for Life takaful cover provided by local Takaful Operators. 

National Bonds Group CEO, Mohammed Qasim Al Ali, said: "Retirement planning is extremely important to ensure people stay financially stable and independent. Today, the UAE is home to over 8 million expats. With this first-of-its-kind initiative designed especially for the private sector, we want to enable expats to invest in their future while supporting corporates with their employee retention strategy."

"In line with the vision of the leadership to make the UAE the preferred country of employment, the scheme enables companies to invest in their employees' end-of-service funds so they can benefit from additional returns on their gratuity - Not many companies do this as accumulated funds are not being invested, which ultimately deprives the employees of these benefits. The visionary leadership of this country has always put their best foot forward in safeguarding and enabling people. Our aim is to contribute to their vision of building a nation of the future, where all citizens and residents are more financially empowered," he added.  

In early industry reaction, Aman Pal Singh, Co-Founder, Benefits For Expats FZC said : This is probably the biggest news for the MENA region yet.

"This might be the miracle the UAE Insurance broking industry has been waiting for…

"The benefits list is going to be long - local credible pension provider, low ticket entry levels, corporate tie-ups, sensible investment strategy, currency protection, life insurance, etc. kudos to National Bonds for taking the lead in this space."

National Bonds Corporation Sole Proprietorship PSC is a Shari'a-compliant savings and investment company, established in 2006. It is 100% owned by The Investment Corporation of Dubai, the investment arm of Dubai government, and is licensed and supervised by the Securities and Commodities Authority.