The Dubai Government has announced a savings scheme for expats working in the public sector.
Here is all you should know about the scheme:
- The “Savings Scheme for Foreign Employees in the Government of Dubai” has been approved by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, to enhance the end-of-service benefits system.
- The Scheme will be supervised by the Dubai International Financial Centre (DIFC) in partnership with several international investment firms.
- The Scheme provides employees with a number of financial benefits, most notably the opportunity to save across different financial portfolios to grow their savings and provide financial sustainability for them and their families.
- The Scheme will also protect and manage dues more effectively by depositing them in the Scheme starting from the date of enrolment; hence, it will not include any financial dues from former years of service to which the current legislation applies.
- Employees will be able to choose multiple investment structures including traditional investment funds, and others compatible with Islamic Sharia.
- Employees who do not wish to invest their benefits will also be provided with options that ensure capital protection.
- His Highness Sheikh Hamdan has directed the formation of a steering committee headed by the General Secretariat of the Executive Council.
- Members of the Committee include the Department of Finance, Dubai Government Human Resources Department, Government of Dubai Legal Affairs Department, Supreme Legislation Committee and Dubai International Financial Center.
- The Committee will develop an action plan, set executive procedures, oversee the workflow of the Scheme, and achieve its objectives, while studying the possibility of extending the new system to the private sector in Dubai on a voluntary basis, in accordance with the legislation in force and in alignment with relevant federal and local authorities.
- The Savings Scheme has been conceptualized after DIFC successfully implemented it for employees working within the DIFC in the year 2020.
- The Scheme is expected to boost financial liquidity in Dubai in the coming years and enhance the quality of the evolving financial environment in the emirate.
- Under the supervision of DIFC, the board of trustees and international investment firms will assume the duties of overseeing the Savings Scheme within a governance system that ensures the efficiency and effectiveness of the Scheme to guarantee it serves the employees’ interests first and foremost, provides multiple investment avenues, and supports the planning and management of human resources in Dubai by securing end-of-service benefits for employees on a regular and sustainable basis within a highly efficient integrated system.
- The initiative aims to ensure that Dubai remains an attractive career destination that appeals to outstanding talent through an integrated system that offers employees various saving opportunities across financial portfolios that can grow their benefits and savings for the future.
