National Bonds launches capital-protected fund for UAE’s voluntary end-of-service scheme

Dubai: National Bonds has launched a Sharia-compliant, capital-protected fund under the UAE’s voluntary end-of-service savings programme, giving employers and employees an alternative to the traditional gratuity system and expanding long-term savings options in the market.

The “National Bonds Capital Protected Shari’a Compliant Fund” is part of the scheme approved by the Ministry of Human Resources and Emiratisation and the Securities and Commodities Authority. National Bonds was among the first institutions accredited to manage such funds last year, and this marks its official entry into the programme with an investment vehicle.

The initiative allows employers to invest end-of-service contributions in approved instruments, while employees can voluntarily contribute up to 25% of their annual salary. The fund aims to protect capital, deliver competitive market-linked returns and support a structured savings culture for the workforce. The system also removes employer-related risks associated with traditional end-of-service obligations.

“For employees, this program opens the door to competitive investment returns that protect against inflation and provide long-term financial stability," said Group CEO Mohammed Qasim Al Ali. "For employers, the program offers practical and transparent tools to efficiently manage end-of-service obligations, enhancing their attractiveness and competitiveness in regional and international labour markets.”

The system is delivered through a digital platform that gives employees real-time access to their balances and returns. Employers gain a structured mechanism to fund gratuity liabilities and strengthen compensation packages in a market that continues to compete for skilled talent.