ABU DHABI - The Securities and Commodities Authority (SCA) has granted the first licence of its kind to National Bonds Corporation and Daman Investment for the management of end-of-service savings funds within the country.

In a statement, the Authority stated that this step represents a significant transformation in managing end-of-service benefits for the workforce in the UAE, as these funds aim to invest employees’ benefits in a secure and reliable manner, ensuring the protection of their rights and increasing the value of their entitlements, thereby enhancing the UAE's position as an attractive destination for work and investment in the region.

The Authority explained that the systems and regulations related to end-of-service savings funds have been developed to align with the best global standards and practices, relying on principles of transparency and governance. This supports workplace stability and provides innovative financial mechanisms that enhance the working experience in the country.

Dr. Maryam Al Suwaidi, Chief Executive Officer of the Securities and Commodities Authority, affirmed that the Authority is making significant efforts in collaboration with its strategic partners to advance the investment fund industry and reinforce its leading role in supporting economic growth in the UAE.

She added that 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 reflects the strong confidence that local and international investors place in the UAE’s robust economic environment.

She expects that end-of-service savings funds will play a pivotal role in enhancing this positive momentum by providing innovative investment solutions that safeguard employee rights and yield sustainable returns, thus supporting labour market stability and the country's efforts to build a competitive and sustainable economy.