UAE’s ‘Second Salary’ savings plan offers its expat majority passive income
The savings plan is the first step in establishing a long-term retirement plan structure by the savings and investment company, amid low rates of retirement savings in the region.
The United Arab Emirates (UAE) announced the launch of a customized savings solution on Tuesday called Second Salary, which appeals to the country’s majority expatriate population who are not offered a government-backed savings plan like those available to nationals.
The initiative is developed by National Bonds, an Islamic-finance compliant savings and investment company owned by the principal investment arm of Dubai’s government, Investment Corporation of Dubai.
Second Salary will be available for both nationals and the UAE’s estimated 90% expatriate population, to generate supplementary income. It’s the first step in establishing a long-term retirement plan structure, according to a National Bonds press release.
Mohammed Qasim Al Ali, Group CEO of National Bonds, said the investment plan was created in response to a growing demand to create a sustainable second income, which gained more popularity after the COVID-19 pandemic.
