KUWAIT CITY, Sept 25: KIPCO — the Kuwait Projects Company — today announced that its new personal pension and savings company, Takaud Savings & Pensions B.S.C. (closed), has received official approval to begin operations from the Central Bank of Bahrain. The announcement means that Takaud can now begin preparations to launch the MENA region’s first range of personal pension and savings products. Takaud Savings & Pensions is incorporated in Bahrain and aims to launch its initial product range in selected MENA countries at the beginning of next year.

In March last year, KIPCO signed an agreement with Munich Re — one of the world’s leading reinsurers — to support the development of Takaud’s long-term savings and pension products. KIPCO believes there is a large and unmet demand throughout the MENA region for low-risk, long-term pension products with secure and reasonable returns. Statistics from the United Nations’ Economic & Social Affairs Department projects that the number of people aged over 65 in the region, estimated at 10.6 million in 2000, will increase to 32 million, or 6.8 percent of the total population, by 2030. This number is expected to grow to 70 million, or 12.3 percent of the total population, by 2050. This means that while 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.

KIPCO’s Group Chief Operating Officer and Takaud Chairman, Samer Khanachet, said the announcement by the Central Bank of Bahrain marked an important milestone in the development of the region’s personal finance industry: “Takaud will provide consumers in our region with the type of reliable pension and savings products they have been looking for, so it is very welcome news that the regulatory authorities in Bahrain have given their final approval to the company. Takaud can now begin its preparations to launch its product range in a number of countries in the region. We believe Takaud will change the face of the region’s personal finance industry, because until now, consumers had few or no choices in how to invest for their future and retirement. Takaud products will be specifically designed to meet the investment aspirations of people in our region and we are highly confident in the company’s success.”

HE the Governor of the Central Bank of Bahrain, Rasheed M. Al Maraj, said: “It is a pleasure to see KIPCO enter into this leading field and to provide pension services and long-term savings products in the Middle East through a pension company licensed in Bahrain. The Central Bank of Bahrain is supporting efforts in this area by providing a suitable environment for the growth and prosperity of these companies.”