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A Swiss private bank is reported to be developing a pension scheme specifically designed to manage retirement savings for expatriates working in the United Arab Emirates.

According to local newspaper, The National, Falcon Private Bank, which is wholly owned by Aabar Investments PJSC which itself is controlled by the government of Abu Dhabi, is considering offering pension schemes for companies operating in the Emirates in a similar fashion to the 401(k) scheme in the US where both companies and employees contribute to a pool of assets overseen by external fund managers.

Late last year, the UAE government announced its intention to introduce a pension scheme for expatriates which would be self-sustainable and competitive.

Speaking at an event organised by research group Insight Discovery in November, Harun Kapetanovic, an economic adviser at the Dubai Department of Economic Development said the proposed scheme would have three main objectives: to promote economic growth, to attract more expatriates to the UAE and to “enhance the welfare of expats”.

Speaking to The National, Falcon’s chief executive Eduardo Leemann said the bank is hoping to launch its pension management scheme within the next two to five years. He added: “It's something that's not very well known in the UAE. For us it's an opportunity, we want to be there and see what kind of share we can capture.”

The newspaper also reported that the bank’s Zurich-based asset management unit has already begun trials, managing a pension fund for expatriate staff at US oil giant Chevron, and is seeking to target other corporate customers wanting to provide pensions to their expatriate employees.