SCA Issues Historic Licence To National Bonds And Daman Investment For End-of-Service Benefits Management

The Securities and Commodities Authority (SCA) has issued a pioneering licence to National Bonds Corporation and Daman Investment. This licence allows them to manage end-of-service savings funds in the UAE. This initiative marks a significant shift in handling employee benefits, aiming to invest these benefits securely and reliably. It ensures the protection of employees' rights and enhances the value of their entitlements.

According to the SCA, this development aligns with global standards and practices, focusing on transparency and governance. These measures aim to support workplace stability and introduce innovative financial mechanisms that improve the working experience in the UAE. The move is expected to bolster the country's appeal as a prime location for work and investment.

Dr. Maryam Al Suwaidi, CEO of the Securities and Commodities Authority, highlighted the Authority's efforts with strategic partners to advance the investment fund industry. She noted that these efforts are crucial in supporting economic growth within the UAE. The asset management sector is experiencing notable progress, reinforcing its status as a leading financial hub both regionally and globally.

Dr. Al Suwaidi stated, "The asset management sector in the UAE is witnessing notable development, strengthening its position as a leading financial hub in the region and globally." This growth demonstrates strong confidence from both local and international investors in the UAE's stable economic environment.

The introduction of end-of-service savings funds is anticipated to significantly contribute to this positive trend. These funds are designed to offer innovative investment solutions that protect employee rights while delivering sustainable returns. By doing so, they support labour market stability and aid in building a competitive and sustainable economy in the country.

The SCA believes that these funds will play a crucial role in enhancing economic momentum by providing secure investment opportunities for employees' benefits. This approach not only safeguards employees' rights but also contributes to creating a more stable workforce environment.

This strategic move by the SCA underscores its commitment to fostering an attractive investment climate in the UAE. By aligning with international best practices, it aims to ensure that employee benefits are managed effectively, thereby enhancing overall economic stability.

With inputs from WAM