United Arab Emirates: Introduction of Golden Pension Plan

The Investment Corporation of Dubai recently introduced a new investment option for foreign nationals and their employers called the Golden Pension Plan, which allows employees to invest a certain amount of their end-of-service benefits with National Bonds (an investment company owned by the Investment Corporation of Dubai), provided they have completed one year of service with their employer. Employers can invest either a lump sum or a portion of their employees’ end-of-service benefits through a pension, and employees have the option to make a voluntary contribution of at least AED 100 per month. Since employees in the United Arab Emirates have historically relied on their end-of-service gratuity as their primary source of savings, these options intend to provide a financial safety net when planning for retirement. The Golden Pension Plan primarily aims to attract skilled workers, increase foreign investment and assist local entities in supporting their employees. Employers interested in offering this plan to their employees must register with National Bonds and employees are advised to research options and discuss their plan with employers.