Pension fund for private sector staff soon

National Bonds plans to launch four new products, which includes a pension fund for private sector employees.

Mohammed Qasim Al Ali, Chief Executive of National Bonds, was quoted by 'Al Ittihad' as saying that the company was negotiating with several private sector firms in the UAE for a pension fund for their expatriate employees.

The system involves a monthly deduction from employees' salaries that will be transferred to the fund, which the employees can avail after retirement. However, the mechanism is still under study, Ali added.

"The savings index launched by National Bonds recently showed the need to add more products in the savings market, which absorbed many of the products, because a large percentage of the UAE population does not believe in regular saving," said Ali.

While one of the products will be introduced before the year end, the other three, which includes a product for women, will be launched in the first quarter of 2011.

National Bonds explores investment opportunities in the industry and energy sectors, he said, and added that the company expects its assets to grow by 30 per cent during the next two years.

The company plans to target segments ignored by commercial banks, he added.

Follow Emirates 24|7 on Google News.