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The Securities and Commodities Authority (SCA) has granted groundbreaking licences to National Bonds Corporation and Daman Investment to manage end-of-service benefits savings funds in the UAE. This marks a major shift in how employee benefits will be managed, offering a secure and efficient system for investing end-of-service entitlements.
In its official statement, the SCA emphasized that this initiative represents a transformative step in ensuring that employees’ end-of-service benefits are not only protected but also grow through prudent investments. This aligns with the UAE’s broader strategy to enhance its appeal as a prime destination for both work and investment within the region.
The authority further explained that the newly developed regulations and systems governing these savings funds are built on international best practices, prioritizing transparency and governance. By adopting such high standards, the UAE aims to foster workplace stability and offer innovative financial solutions that enhance the overall working environment.
Dr. Maryam Al Suwaidi, Chief Executive Officer of the SCA, highlighted the significance of this development, noting that the Authority, in collaboration with strategic partners, is working to propel the investment fund industry forward. This move will strengthen the UAE’s role as a global financial hub and a leader in asset management within the region.
According to Dr. Al Suwaidi, the asset management sector in the UAE is experiencing remarkable growth, reflecting strong confidence from both local and international investors. This confidence is built on the UAE’s robust economic environment, which continues to attract global interest.
She further noted that the introduction of end-of-service savings funds would contribute significantly to this momentum, offering employees innovative investment solutions that protect their rights while providing sustainable financial returns. This initiative not only supports labour market stability but also reinforces the UAE’s efforts to build a competitive and sustainable economy.
With these newly established savings funds, the UAE is setting the stage for a more secure and reliable financial future for its workforce, further solidifying its position as a leading player in global finance and economic development.
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