Dubai: New end-of-service savings scheme for expats announced

The Dubai Government has announced a savings scheme for expats working in the public sector. The scheme will be optional for private sector firms.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council, announced the scheme after he chaired an Executive Council meeting.

It will be an "important addition" to end-of-service benefits currently given to employees, tweeted Sheikh Hamdan.

The project will be implemented in stages.

Multiple investment schemes will be offered to employees, including Sharia-compliant ones. Employees who do not wish to invest their benefits will also be provided with options that ensure capital protection.

"The Dubai Government's initiatives are aimed at ensuring a decent life for all employees and their families," said Sheikh Hamdan.

According to the Government of Dubai Media Office, the Dubai International Financial Centre will supervise the scheme in partnership with several "international investment firms that provide attractive and safe investment opportunities".

The initiative will also ensure Dubai remains an attractive career destination that "appeals to outstanding talent". This will be done through an "integrated system" that offers employees various savings opportunities across financial portfolios.

Sheikh Hamdan said the scheme would ensure that all employees, whether citizens or residents are provided with the support they require.

"We seek to enhance the flexibility and attractiveness of the market in Dubai through the continuous development of our systems. The Savings Scheme is a new step towards attracting more talent, innovators and investors across various fields, as we look to consolidate Dubai's position as a leading city that delivers optimum work and living standards."

Financial benefits

The scheme provides employees with a number of financial benefits, most notably the opportunity to save across different financial portfolios.

It will protect and manage dues more effectively by depositing them from the date of enrolment. Thus, it will not include any financial dues from former years of service to which the current legislation applies.

ALSO READ:

• Dubai: New law to regulate possession of private property for public use

• Labour reforms, green building, new sports law: 11 highlights from the first 2022 UAE Cabinet meeting

• New decree in Dubai prohibits residential majlises from collecting donations

• UAE: New law for non-Muslims offers 'modern framework' to settle family disputes, says expert

Committee to oversee project

The Dubai Crown Prince has directed the formation of a committee that will supervise the project.

It will be headed by the General Secretariat of the Executive Council, and members include the Department of Finance, Dubai Government Human Resources Department, Government of Dubai Legal Affairs Department, Supreme Legislation Committee and Dubai International Financial Centre.

The committee will develop an action plan, set executive procedures, oversee the workflow of the scheme and achieve its objectives.

It will also study the possibility of extending the new system to the private sector in Dubai "on a voluntary basis". This will be done in accordance with the legislation in force and in alignment with relevant federal and local authorities.

sahim@khaleejtimes.com

• Newsletters
• UAE