Expats living and working in the United Arab Emirates now have access to a government-backed pension scheme for the first time.
The UAE has no state pension scheme for the huge expat community, and the arrangement is designed to help firms based in the Emirates attract and retain talent.
A range of schemes are offered, with each tailored to client needs. Employers and employees can both make contributions.
A spokesman for NBAD Trust Services, a branch of the national UAE bank managing the pensions, said: “This is a cost-effective savings solution which is professionally managed and will give employers an opportunity to show that they have the long term interests of their staff in mind.
Wealth management
“Also, having this scheme will have a positive effect on their ability to recruit and retain high quality staff.”
The new trust is based in Jersey as wholly-owned subsidiary of the National Bank of Abu Dhabi (NBAD) and is the first pension scheme for expats provided by a UAE bank.
It has been hailed as ‘ground-breaking’ by Jersey Finance which represents the island’s financial services, saying it reflects well on Jersey’s international experience in wealth management.
Sean Costello, who represents Jersey Finance in the Gulf region, said: “Jersey is globally recognised for having a strong trust legislation and regulatory framework and expertise in wealth structuring work and we are delighted that NBAD has decided that Jersey is the best place for launching its new service.
Expat pension scheme
“Expats make up 90% of UAE’s population but there is no government pension scheme for them so for Jersey to be involved in such an innovative development is fantastic news.
“The new scheme also underlines Jersey’s commitment to the UAE and wider Gulf region and helps cement our position in the international market for financial services.”
One reason for the setting up of the scheme is discourage expats from sending most of their salaries home. They can select investments with varying levels of risk, since the pensions are a package of corporate investments which expats have been barred from accessing so far.
The UAE is one of a few financial centres which does not offer a government-backed pension scheme.
Financial experts say the new scheme will also be more rewarding than the cash lump sum which is currently awarded when an expat finishes their work contract and is aimed at encouraging more expats to make the UAE their permanent home.
Find out more
To get more information about these schemes and other details about expat pensions, complete the contact form here and we will send to you an information pack.
