TAKAUD is a first for the region and provides customers with global investment expertise utilising world class investment solutions developed specifically for the MENA region. TAKAUD’s international investment partners include BlackRock, BNP Paribas, Dexia, Franklin Templeton, PIMCO, and Schroder to name a few.
According to the World Bank, the space for private pension development is expected to expand in the MENA region due to demand from both nationals and expatriates, and the associated sustainability issues of various public pension schemes. Additionally, the National Bonds GCC Savings Index indicate that 30% of MENA citizens do not save and within the GCC, 64% of GCC citizens save less than a fifth of their monthly income and nearly 9 out of 10 GCC residents believing their savings are not adequate to support their long term needs.
“There is clearly a critical need for MENA-specific long-term savings and pensions solutions. Public pensions will continue to play a significant role in the MENA region, especially in the GCC countries, but for many of the population, there could be funding gaps for meeting certain financial or retirement goals. For MENA nationals, TAKAUD’s solutions could help supplement public pensions in order to counter the effects of inflation and meet short-falls in their financial planning. Expatriates can also benefit as these solutions could top-up their end-of-service benefits and add to their retirement savings,” Abdallah Kubursi, CEO of TAKAUD, said.
“With our unique solutions, TAKAUD aims to bring about a paradigm shift to the region in terms of how people take control of their financial future and long term needs.”
TAKAUD’s ‘Individual Savings Plan’ provides a simple and localized approach to savings and pensions. With a minimum monthly contribution starting at BD25, the product offers an affordable savings solution easily accessible to MENA nationals and resident expats for various financial goals and life stages including retirement, children’s education, new home purchases, starting a business or having the resources in place to financially manage any unforeseen emergencies.
The new ‘Individual Savings Plan’ can be totally customized to suit a person’s individual requirements in terms of risk, reward, diversification, age, time horizons and financial goals. TAKAUD has innovative state-of-the-art online customer servicing which provides easy product access and options to manage savings, set multiple savings goals and continuously track investment performance.
Regional market research has clearly revealed that there is a low level of savings in the MENA region, defying the perception that people save a large proportion of their income. It also highlights that there is uncertainty among many individuals about their plans for retirement and widespread concern about whether current standards of living can be preserved in retirement. Many individuals are expecting to work later in life in order to maintain current standards of living in retirement.
“Studies have shown that savings rates in MENA are significantly lower in comparison to many emerging markets,” Samer Khanachet, Chairman of TAKAUD and KIPCO’s Chief Operating Officer, said.
“These indicators unless addressed will lead to serious issues in financial and retirement planning for both MENA nationals and resident expats. TAKAUD directly addresses these critical issues by offering innovative savings and pension solutions. Our ‘Individual Savings Plan’ was developed with a ground-up approach to specifically suit the needs of MENA customers. This individual savings market offering will complement our corporate ‘Employee Savings Plan’ which we recently introduced to the market. TAKAUD serve as centre stage within the MENA savings and pensions’ space and we are committed to providing both nationals and expatriates with best-in-class savings and pensions solutions.”