Having been working with countries across the Gulf for many years and with a presence in the UAE since 2011, Jersey has established itself as a leading jurisdiction for private wealth management, supporting the increasingly sophisticated international wealth and succession planning strategies for families in the region.
That leading position was underlined last year when Jersey became the first International Finance Centre (IFC) to open an office in the Dubai International Finance Centre (DIFC), and there is no doubt that investors in the Gulf continue to find genuine appeal in the expertise, substance and stability offered by Jersey’s award winning IFC.
This year Jersey is looking to build on its reputation as a forward-thinking IFC in a number of new diverse areas – including supporting the long-term savings needs of international employees working for firms in the region.
The need for such solutions has been brought sharply into focus in recent times. A recent study by Old Mutual International and Quilter Cheviot found that nearly 60 per cent of UAE workers will depend on gratuity payments to partly or fully fund their retirement, whilst a report last year from Willis Towers Watson found that only 20 per cent of firms in the Gulf offer a retirement or long-term savings plans for their employees.
Richard Nunn, Head of Business Development, Jersey Finance
Further, it is envisaged that there will be growing interest from the Gulf region with the provision of schemes such as international savings plans (ISPs) anticipated to become mandatory for end of service benefit payments in the future.
Jersey’s response is the new innovative International Savings Plan (ISP) product, introduced in January this year designed to enable large multinational companies to set up savings plans in Jersey for their non-resident employees.
Whilst savings plans are not new, it’s increasingly clear that international employers are looking to establish them in reputable well-regulated jurisdictions. Selecting an IFC that has the proven expertise, a robust regulatory framework and political and economic stability is vital - and Jersey is ideally placed to meet those requirements.
Approved by the Jersey tax authorities, the Jersey ISP differs from traditional pensions offered to employees. Acknowledging that employees today are likely to work for several employers in their careers, for instance, the ISP has been designed to ensure employees have access to savings when they need it most.
They can be tailored to meet the needs of employer and employee and are more flexible, as they allow a pay-out to employees before the normal minimum pension age, either on termination of employment or on the occurrence of a major life changing event, such as redundancy, divorce, or children going to university.
Having been at the forefront of global finance for over 50 years and with more than 13,200 professionally-qualified, expert finance industry employees, Jersey is ready to support the needs of multinational companies looking to set up ISPs for their employees to provide them with a better platform for their future savings needs.