Pension and long-term saving schemes in the Gulf region face the complex task of accommodating various work types and contract systems. Savers differ greatly in risk appetite and financial sophistication. To effectively navigate this environment, technology platforms underpinning these schemes must bring together the best of traditional pension systems with modern wealth platforms. These platforms must excel in regulatory adaptability and offer a wide range of asset classes. They should also provide personalisation features, allowing users to tailor portfolios according to their specific needs, such as risk diversification or ethical investment choices. Additionally, platforms should offer both global and local asset classes to cater to the diverse population in the Gulf. Automation capabilities, like automated portfolio rebalancing and ‘lifecycle’ funds, can further simplify the investment process for savers.

The UK’s recent Mansion House reforms are an instructive example of what systems could be able to adapt to. These groundbreaking measures have seen DC pension schemes vow to allocate 5% of their default funds to unlisted equities by 2030. By doing so, the reforms seek to extend the gamut of asset classes available to pension savers and furnish them with access to high-growth private companies, enhancing their investment returns and acting as a catalyst for private-sector growth.

Gulf states may wish to enable investment access to private capital. Some may see the value in earmarking a certain percentage of workplace pension investments in, say, local companies. Changes that appear simple on paper, however, may be challenging to implement in practice: as lucrative as investing in private capital may be, it comes coupled with a host of technical challenges on the saver side that demand careful attention. Regardless of what policymakers choose, it is critical that they embrace a flexible underlying technology