Many professionals around the world opt to work in Dubai due to the variety of benefits and opportunities that it offers. Recently, the Dubai government announced a new end-of-service savings scheme that will come into effect in July this year. This new initiative that the Dubai government will implement aims to attract and retain talent, benefitting ex-pats.
In this article, you will learn everything about this new scheme, including its goals, benefits, and many other interesting details. You will also know about the authorities involved in this project and how they plan to implement this initiative.
- What is the new end-of-service savings scheme?
- What is the aim of this new scheme?
- How can this new initiative be beneficial for ex-pats in Dubai?
- Details you should know about the announcement of the new scheme
- Were there any previous initiatives similar to the new end-of-service savings scheme?
- Other recent news and announcements made by the UAE government
- How can Connect Resources help you get more information about this new scheme?
1. What is the new end-of-service savings scheme?
During the last few weeks, the DIFC (Dubai International Financial Centre) has been holding several virtual meetings with other entities. More precisely, they held meetings with senior executives from multiple government entities to discuss the details of their new initiative. And now, the Dubai International Financial Centre has announced the implementation of a new scheme that will significantly benefit professionals.
The new end-of-service savings scheme that the authorities have announced will be favorable for expatriates who work in government departments. And the main objective of this new initiative will be attracting and retaining talent in Dubai by offering savings opportunities. These opportunities will be offered through an integrated system that the authorities in charge will eventually implement as part of the initiative.
The Crown Prince of Dubai, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, approved this scheme in March 2022. However, the entity responsible for supervising its implementation, the DIFC, announced that it will come into effect on July 1st, 2022. And also, the Dubai International Financial Centre explained the first stages that will conform to this new end-of-service savings scheme.
The first stage of this new savings scheme will mainly target foreign employees who work in government agencies in Dubai. And then, there will be the scope of implementation that will expand in the later stages of the Dubai government’s new initiative. In case you are interested in learning more about this recent announcement, below you will find more details about it.
2. What is the aim of this new scheme?
We can identify the three main objectives of the end-of-service savings scheme that the Dubai authorities recently announced. We shall take a brief look at them:
- The new end-of-service savings scheme aims to provide opportunities for employees to enhance their privileges and assets. And while doing this, they will be able to protect and preserve their rights.
- It will also increase the freedom and appeal of the Dubai labour bid. This way, it will be possible to attract the top skilled professionals.
- The Dubai government’s new initiative has the purpose of creating a culture of saving and asset management for workers’ current and future needs or requirements.
The end-of-service savings scheme will provide a lot of benefits after its implementation in Dubai on July 1st, 2022. Many authorities related to this initiative have already given their opinions about it, which are positive since they believe this project is promising.
One of the many benefits that it will provide is strengthening Dubai’s position as a global financial center. That is because it will act as an incubator for global expertise and competencies, according to Mohammed Abdul Rahman Al Hawi. Below, you will be able to find more information about the many benefits that this new initiative will provide.
3. How can this new initiative be beneficial for ex-pats in Dubai?
The Executive Vice President of Government Services and Registration, Alya Hussain Al Zarouni, provided her opinion regarding the new scheme. She said that the move to expand the coverage of the Employees Savings Funds Scheme in the workplace supports Dubai’s vision of establishing itself as an attractive talent hub. Therefore, this new comprehensive savings plan will provide valuable benefits to retirement plans, while it aligns with international best practices.
On the other hand, The Provident Fund is a qualitative addition from the Dubai government. It plays a major role in enhancing the economic and social stability that the authorities provide to its employees. This was confirmed by the Director of Policies and Strategies for the Economic Development Department at the General Secretariat of the Executive Council of Dubai, Mohammed Abdul Rahman Al Hawi.
Furthermore, he also mentioned that the fund will contribute to strengthening Dubai’s position as a global financial center. Plus, he added that Dubai is an incubator for expertise and competencies from around the world. Of course, this is in accordance with international best practices in the interest of the workforce and its development within an integrated system. According to Mohammed Abdul Rahman Al Hawi, this integrated system will enhance the attractiveness and flexibility of Dubai’s labour market.
The Director of Policy and Program Support Department at the Dubai Government HR Department, Eman Saleh Bin Khatam, also talked about the new scheme. He said that thanks to the savings plan, employees can efficiently manage and finance their end-of-service benefits. Also, the plan will give foreign employees an effective way to save and invest with high confidence. He added that the launch of the Provident Fund for Dubai Government employees aims to empower employees to take full control of their financial future.
4. Details you should know about the announcement of the new scheme
To summarize the information we previously provided, let’s take a look at this section that explains specific details of the scheme. This way, it will be easier to have a clear idea of how the end-of-service savings scheme will work. More precisely, we will summarize three main points of the scheme, which are the following:
- Who is in charge of the new end-of-service savings initiative?
- Who will be the master trustee of the scheme?
- When will the authorities implement the new scheme?
- Who can enjoy the benefits of this new initiative?
4.1. Who is in charge of the new end-of-service savings initiative?
The recently announced end-of-service savings scheme will be managed by a board of trustees and global investment institutions. It is also important to mention that the initiative will be carried out under the supervision of the DIFC (Dubai International Financial Centre).
4.2. Who will be the master trustee of the scheme?
Equiom, a global professional services provider, will act as the master trustee of the new end-of-service savings scheme. Besides, Equiom will also act as the independent legal owner of contributions that employers make. Of course, it will ensure that its beneficial interest lies with employees.
On the other hand, Zurich Workplace Solutions will support employees and employers through the management of the new scheme. Furthermore, Mercer, an investment services provider, will provide advice to Equiom, the master trustee of the scheme.
4.3. When will the authorities implement the new scheme?
Although it was approved by the Crown Prince of Dubai in March 2022, it will be implemented several months later. In other words, the new end-of-service savings scheme and its efficient system will come into effect on July 1st, 2022.
4.4. Who can enjoy the benefits of this new initiative?
The ones who will benefit the most from this initiative are the employees who work in the public sector in Dubai. However, this new scheme will have a system that may also be voluntarily applied to private-sector workers in the emirate. But in that case, companies and employees will have to follow coordination with relevant federal and local entities.
5. Were there any previous initiatives similar to the new end-of-service savings scheme?
Before the end-of-service savings scheme, the Dubai government launched the Employee Workplace Provident Fund Scheme in February 2020. And back then, this initiative was the first of its kind in this region, until the new scheme was announced this year. In fact, the previous initiative restructured the end-of-service benefits plan for professionals working in the Dubai International Financial Centre.
The previous project achieved outstanding success in terms of performance and scale, despite the COVID-19 pandemic that outbroke after its launch. And due to this successful experience, the government will now implement the new scheme that we previously explained. It is also worth mentioning that the end-of-service savings scheme will be in line with international retirement savings standards.
6. Other recent news and announcements made by the UAE government
Besides the recently announced end-of-service savings scheme, the UAE government has also made other recent announcements that you should know about. For example, there are two main ones that both companies and professionals must be aware of.
One of them is related to the new classification system for companies. And the other one is about the new Entry Visas and Residency Scheme. Below, you will be able to find brief information about these recent announcements.
6.1. About the new classification system for private sector companies
This month, the MOHRE implemented a new system that classifies companies that operate in the private sector based on certain factors. For example, the main element that will be taken into account is the companies’ compliance with directives and UAE laws. And the system will classify private sector companies into three different categories depending on their adherence to regulations.
6.2. About the new entry visas and residency system
The UAE Cabinet also announced a new scheme regarding the entry and residency visas for professionals working in the country. And the new scheme includes changes in the rules of existing visas, such as the Golden Visa. Furthermore, there will also be important changes in the rules related to the Green Visa for professionals.
7. How can Connect Resources help you get more information about this new scheme?
Keeping up-to-date with announcements like these is key to having a successful career in the UAE without making costly mistakes. With Connect Resources as your business partner, you will be able to learn about the new initiatives and regulations. Staying compliant with the authorities’ new rules will be an easy task for any professional in the UAE.
On the other hand, whether you are a business owner, an employee, or an independent professional, you should take a look at our services. With us, you will achieve your goals quickly, as we help you boost your career or business.
Are you ready? Get in touch with our specialists to obtain more information about our services. Regardless of your location in the Middle East, we will find you the perfect solution.
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