UAE authorises two firms to offer end of service savings schemes

Authorities in the UAE have approved two investment firms to operate end-of-service savings schemes for workers in the private sector.

Lunate and Daman Investments are the first batch of companies that have received approval to launch savings funds under the country's Voluntary Alternative End-of-Service Benefits Scheme.

Their applications were cleared by the Ministry of Human Resources and Emiratisation (MoHRE) and the Securities and Commodities Authority (SCA) after ensuring their compliance with regulatory requirements, standards and conditions.

This authorisation also allows the two firms to sign agreements with employers and accept voluntary subscriptions, in accordance with a strict set of standards.

Under the Savings Scheme, the end-of-service benefits of employees are invested in recognised investment funds, enabling them to receive returns upon completion of their service.

In a joint statement, the MoHRE and the SCA said: "The Savings System serves to ensure that workers benefit from investing their end-of-service gratuity, generating additional financial gains through the safe investment of their savings, which helps guarantee their rights and ensure stability for their families."

Companies can register their employees in the Savings Scheme by directly contacting Lunate or Daman Investments. The MoHRE has also created a dedicated page on its website, featuring details about authorised savings funds and registration processes.

We announce that Lunate and Daman Investments have been accredited as the first investment funds authorised under the Voluntary Alternative End-of-Service Benefits Scheme (Savings Scheme).

Following a thorough review by the joint committee comprising the Ministry and the… pic.twitter.com/A5AuLO0FCG

— وزارة الموارد البشرية والتوطين (@MOHRE_UAE) July 4, 2024