The Dubai government has announced the launch of a new savings scheme for expat employees in the public sector.
Being the first-of-its-kind in the region, this scheme aims to offer employees the opportunity to improve their savings and end-of-service dues.
Some key features of the scheme include:
- It will improve end-of-service indemnities in the Dubai government.
- Employees will be able choose multiple investment structures including traditional investment funds and others compatible with Shariah law. Those who do not wish to invest their benefits will have other options to ensure capital protection.
- The financial dues will be deposited from the date of plan enrolment.
- The extent to which this system can be applied to private sector in Dubai, would be assessed, after coordination with relevant local and federal entities.
- It will be managed by Board of Trustees and International Investment Institutions under the supervision of Dubai International Financial Centre.
- The scheme will ensure that all government employees and their families will have growth opportunities and a high-quality life all through their career and at the end of their service.
- All employees will be provided the opportunity to save across various financial portfolios to improve their savings.
- It will protect and manage dues effectively by depositing them in the scheme from the date of enrolment. This does not include any financial dues from former years of service.
- A committee would be formed to develop an action plan, set executive procedures, monitor the scheme workflow and achieve objectives, while also studying the possibility of extending the new system to the private sector in Dubai on a voluntary basis.
The scheme was conceptualized following the successful implementation of the same by DIFC in 2020 for its employees.