Provident Funds

A provident fund is a long-term savings instrument designed both for salaried employees and self-employed individuals that enjoys tax benefits and exemption from capital gains tax. Savers depositing via provident funds are called “members.” Each member of deposited funds owns a separate account in which his deposits, withdrawals, yield on the fund investment, and management fees charged for the account are recorded. Assets of provident funds are invested in accordance with the legislative arrangement and policy of the funds. The achieved yield is divided among the account members of the provident funds in proportion to their share in the assets of the funds.

Halman Aldubi, Financial Products