The Gulf’s First Private Pension Launches

Takaud Savings and Pensions has become the first GCC-based pension provider after launching its maiden product on Wednesday, aiming to meet the growing demand for pension products across the MENA region.

The new product is designed to support businesses in effectively managing their End of Service Benefit (ESB) liabilities.

The Bahrain company, which received regulatory approval to operate in September, aims to branch out into nine countries by 2016, predicting $1 billion of assets within the next five years.

Abdallah Kubursi, chief executive, said: “This is one product in a range of corporate and individual savings and pensions solutions we will be launching over the coming months. We are delighted to be in a position where we can bring new and innovative long term savings and pensions solutions to the markets we serve.”

The launch of its maiden project will aim to benefit MENA companies as they look to deal with an ageing population across the Middle East.

The ‘Takaud ESB Plan’ allows companies to manage their own personalised investment strategy with the choice of using the product’s online services to ease administration, or to delegate entire responsibility to Takaud.

The rise in life expectancy in the Gulf region has put pressure on government retirement schemes, which may start being complemented by privately run products.

The population over the age of 65 in the GCC is predicted to grow by 94 per cent between 2010 and 2020 to about 1.9 million, according to United Nations data.

Takaud is owned by Kuwait Projects Company (KIPCO) and its subsidiary United Gulf Bank, each holding a 50 per cent stake.