The News
The mandatory employee retirement savings held as cash on UAE companies’ books may soon be funneled into more profitable, and riskier, investments.
Abu Dhabi-based investment firm Lunate’s newly launched Ghaf Benefits Scheme will allow companies to transfer these savings into a selection of six investment funds — a game-changer for the UAE’s 85% expat population, who were previously barred from investing these funds in stocks and other assets. Abu Dhabi sovereign wealth fund ADQ — whose portfolio includes Etihad Airways and logistics firm Aramex — is considering adopting the program for potentially tens of thousands of employees.
Lunate executives expect the UAE’s market for employer-sponsored savings to expand rapidly from a small base.
AD