Takaud Savings & Pensions B.S.C. is a very new, strong and dynamic pension funds company headquartered in the Kingdom of Bahrain. Amidst the deepening global financial crisis which has resulted in a downward trend in pension funds all around the world, Takaud Savings & Pensions has shown strong immunity to the crisis.
Unlike the rest of the world, the number of pension funds participant in the MENA is minimal because it is a new concept in the region but Abdallah Kubursi, Chief Executive Officer of Takaud Savings and Pensions Company strongly believes in people’s need for pension funds which represent a safe investment.
He has conducted extensive research and in-depth analysis on the Arab pension market. Takaud Savings & Pensions will help clients to analyze opportunities that are critical to the success of the emerging private pension market in the region. Detailed data along with advanced statistics will help investors in navigating through the evolving regional pension funds market.
BL: What are your comments on the economy of the region?
Kubursi: While the MENA region is going through a period of unprecedented change, uncertainty and political transition in a number of countries, it is my opinion that this downturn can also be viewed as a catalyst to pushing economic transformation forward in the region. Regional Governments are leading the way with implementation of national reform, modernization of policy framework, education and job creation to promote a sustainable economic environment poised for growth. I am confident that over the next 12 months we will start to feel the positive effects of changes being implemented today.
BL: Does Takaud Savings & Pensions B.S.C. have any competitor in the Middle East and North Africa region?
Kubursi: The financial services industry is developing in the MENA region. Competition and choice is growing across all product areas. However, I believe our focus on medium to long term savings and pension’s products, designed to meet the needs of local populations, will cement our place as a leading player and experts in our field.
BL: Why did you choose the Kingdom of Bahrain to begin your operations in the MENA?
Kubursi: We chose Bahrain as our operational hub for three key reasons- a good infrastructure, the availability of local and qualified human resources, and an excellent regulatory framework with strong support from the CBB (Central Bank of Bahrain).
We believe that Bahrain provides a suitable environment for business growth and prosperity.
BL: Why are you launching the product range of Takaud Savings & Pensions in selected MENA countries in September 2012?
Kubursi: We are a ‘home grown’ company with a primary focus on individuals and businesses in our community. Our products have been designed to bridge the gap between what people and companies in the MENA region currently have and what they need for a secure financial future.
BL: What are your expectations out of this launch?
Kubursi: To raise awareness of the need to save for the future. I see it as our responsibility to educate individuals on the importance of saving early for retirement. We also want to engage companies in the need to protect their employees’ end of service benefit whilst also offering pension/savings schemes that will help them recruit and retain staff.
BL: Why did you sign an agreement specifically with Munich Re last year?
Kubursi: Munich is well known as an industry leader. The agreement allows us to secure support, if required, as we develop our products and business.
BL: Do you think that there is demand throughout the MENA region for low-risk, long-term pension products like Takaud Savings & Pensions products and plans?
Kubursi: Yes, there is increasing demand due to favorable demographics, growing wealth and cultural changes.
BL: Recent statistics reveal that the region’s total population will double during the first half of the century, the population of over 65s will multiply by more than six times in the same period. How does this fact affect the region’s economies and the future of its old citizens?
Kubursi: This shows what could be a serious problem in the provision of livable pensions in the future unless the discipline of saving for the long-term starts to become mainstream.
BL: Will the above fact create insecurity for those Arabs and Africans who do not foresee the urgent need to plan at an early age for their retirement especially that in the MENA region there is not enough governmental plans for pensioners and retired people? How can we solve the gap between what governments can provide and the citizens’ future needs?
Kubursi: Many of the countries in the MENA region currently have what could be regarded as generous provisions for retirement. However if you look at what is happening in some of the wealthiest countries in the world you do get some insight into the challenges we could face in the future. Personal and privately sponsored savings will inevitably form important pillars in achieving financial security for us all.
BL: How would you compare the Europeans and Americans to the Arabs and Africans in the specific savings and pensions’ plans?
Kubursi: Everyone is becoming conscious of the need to save for the future. The only difference is in the incentives and opportunities provided. Our products are tailored to the markets we serve.
BL: What are you offering?
Kubursi: Our products have been designed in response to market research in the MENA region. At Takaud we offer a range of medium to long term savings and pensions solutions for individuals and companies. By offering companies and individuals a range of innovative products that are specifically designed to meet the investment aspiration of people in our region we aim to create a new way for people to save for the future. Our convenient online services, tools and educational support are designed to help our clients identify and understand their needs in a transparent way.
BL: What are your expansion plans?
Kubursi: We aim to expand across the MENA region in 9 different countries over the next 3 years. We will launch in Bahrain, Kuwait, and Jordan in 2012. We subsequently plan to expand in Saudi Arabia, Egypt, Tunisia, and Algeria, followed by the UAE and Qatar. Whilst challenging, we firmly believe the targets are achievable
BL: Whom are you targeting and why?
Kubursi: Takaud is a provider of savings and pensions products focused on the needs of the local populations in the MENA region. Growing middle classes, increasing levels of awareness, demographic and changing cultural environments are powerful drivers of demand for long term savings and private pension’s products. We also aim to assist employers by providing a way of investing single or regular contributions in a cost effective corporate solution.
BL: Do you believe that your mission is to transform the region’s personal finance industry? How?
Kubursi: I believe it is our job to help transform the industry. Moreover, I also passionately believe that providing world class corporate and personal solutions that companies and individuals can use to achieve their objectives can make an important contribution to the well-being of everyone.
BL: Abdallah, what are the differences between your present post and you previous post at Ace Life where you were the Regional Managing Director for the MENA region?
Kubursi: Every position and every company is different. What I can say is that being a part of a startup company where I can work with a team of professional experts to assist in the building process of every aspect of this business from the ground up with the strong support and commitment of our shareholders is a huge opportunity and a challenge I relish.
BL: What are your present and future challenges?
Kubursi: Our current challenge is to build an effective distribution framework to bring to market our range of savings and pensions plans. Our future challenge is to increase the geographic footprint of Takaud.
BL: Did the region’s turbulence and revolutions delay your operations and plans?
Kubursi: There has been no real impact on our operational plans. Naturally, we live and work in the community and what impacts our new or prospective customers impacts us.
