Savings scheme

Dubai: announcement of a new end-of-service savings program for expatriates – News

The Crown Prince of Dubai chaired the Executive Council meeting and approved the fund for foreign public sector employees



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By a staff reporter

Published: Wed, March 2, 2022, 7:07 PM

Last update: Wed, March 2, 2022, 9:26 PM

The Dubai government has announced a savings program for expatriates working in the public sector. The scheme will be optional for private sector companies.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council, announced the program after chairing a meeting of the Executive Council.

It will be a “significant addition” to the end-of-service benefits currently granted to employees, Sheikh Hamdan tweeted.

The project will be implemented in stages.

Several investment schemes will be offered to employees, including those compliant with Shariah. Employees who do not wish to invest their benefits will also be offered options guaranteeing capital protection.

“The initiatives of the Government of Dubai are aimed at ensuring a decent life for all employees and their families,” said Sheikh Hamdan.

According to the Dubai Government Media Office, the Dubai International Financial Center will oversee the program in partnership with several “international investment firms that offer attractive and secure investment opportunities”.

The initiative will also ensure that Dubai remains an attractive career destination that “attracts exceptional talent”. This will be done through an “integrated system” that provides employees with various savings opportunities across financial portfolios.

Sheikh Hamdan said the program would ensure that all employees, whether citizens or residents, receive the support they need.

“We seek to improve the flexibility and attractiveness of the Dubai market through the continuous development of our systems. The savings program is a new step to attract more talents, innovators and investors in various fields, so that we seek to consolidate Dubai’s position as a leading city that offers an optimal standard of working and living.”

Financial benefits

The plan offers employees a number of financial benefits, including the ability to save in different financial portfolios.

It will protect and manage dues more efficiently by paying them from the date of registration. Thus, it will not include the financial contributions of the previous years of service to which the current legislation applies.

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Project Monitoring Committee

The Crown Prince of Dubai led the formation of a committee that will oversee the project.

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

The committee will develop an action plan, establish executive procedures, oversee the program’s workflow, and achieve its goals.

It will also explore the possibility of extending the new system to the private sector in Dubai “on a voluntary basis”. This will be done in accordance with applicable law and in alignment with relevant federal and local authorities.

sahim@khaleejtimes.com


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