Sheikh Mohammed bin Rashid Al Maktoum announced the initiative on September 4, 2023. ARCHIVE

The UAE has announced a new end-of-service investment scheme for all employees in the private sector and free zones Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, announced the initiative in a recent UAE Cabinet meeting, saying its aim was to protect workers' savings and ensure that savings are invested safely. According to Sheikh Mohammed, the initiative would be voluntary or optional for private sector workers, and would include the establishment of savings and investment funds for the private sector. He said that public sector workers will also be able to participate in the new scheme. “Through this system, employees can save and invest their end-of-service benefits in various investment options,” Sheikh Mohammed said, “The goal is to safeguard the savings of employees, which represent their end-of-service benefits in the companies they work for, ensuring their rights and providing stability for their families.” Participating companies must pay a monthly contribution. At the time of their end of service, participating employees will receive the savings they have accrued and the returns they made from participating in investment funds. Sheikh Mohammed did not give a timeline as to when the scheme would be launched. The end-of-service investment initiative will be overseen by the Securities and Commodities Authority in partnership with the Ministry of Human Resources and Emiratisation. According to the UAE Government Media Office, the end-of-service investment scheme would have three options: A risk-free investment that maintains capital; risk-based investment, and sharia-compliant investment. Another end-of-service scheme that has been available since 2022 is the Golden Pension plan by National Bonds. The scheme allows expat workers in the private sector to enroll in a pension scheme that they can draw from in their retirement. ICA/Expat Media  
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