National Bonds Corporation Sole Proprietorship PSC (“National Bonds” or “Company”) has officially been recognized as a provider for the new End-of-Service Benefits (EOSB) Savings Scheme, according to information cited on the Ministry of Human Resources and Emiratisation (MoHRE) website on 2 October 2024.
This disclosure follows the earlier approvals of Daman Investments and Lunate in July 2024, making National Bonds the third approved provider for UAE’s mainland scheme.
While an official announcement from MoHRE is still pending, the customer guide of National Bonds (available for download at the bottom of this page) reveals that the Company will deliver its EOSB savings solution in collaboration with Standard Chartered that will act as the fund administrator and custodian bank.
The guide also highlights the launch of a Shariah-compliant capital guarantee fund called the End of Service Capital Protection Fund. This fund aims to help companies grow their employees’ EOSB savings in a low-risk environment, targeting returns similar to money market rates while ensuring capital protection.
The guide further elaborates that employees will benefit from competitive profits (akin to investment gains) ‘paid’ monthly and employees will also be eligible for the National Bonds rewards program.
The EOSB savings solution will reportedly be delivered through a digital and interactive platform, designed to electronically transmit employee and company data from MoHRE to the fund administrator, streamlining processes and reducing manual workflows. This advancement sets National Bonds apart from the current procedures of other approved fund managers.
As a leading savings and investment company, National Bonds has managed the savings of over 900,000 investors since its inception in 2006, overseeing assets totaling AED 14bn (FY 2023) and distributing 758mn in rewards. The Company is fully owned by the Investment Corporation of Dubai (ICD) and is licensed and regulated by the Securities and Commodities Authority (SCA).
National Bonds was also recently included as an investment option in the DEWS (DIFC Employee Workplace Savings) Plan in May 2024, further expanding its Shariah-compliant savings offerings in the DIFC.
Further details regarding the asset allocation, average maturity, expected yield, and the capital protection mechanism of the End of Service Capital Protection Fund will be provided in an upcoming article.
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