Dubai government announced the launch of a new savings scheme for expatriate employees working in the public sector, on 2 March 2022.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council announced the scheme following an Executive Council meeting. The scheme could be expanded to the private sector on a voluntary basis only. The savings scheme aims to provide government employees with an opportunity to enhance their savings and end-of-service dues.
Employees will be offered multiple investment plans, including the ones that are Shariah-compliant. Employees, who do not wish to invest their benefits, will also be provided with options that ensure capital protection.
The scheme will ensure that all government employees and their families are provided with opportunities for growth and high quality of life, throughout their careers and at the end of their service.
The scheme will be overseen by the Dubai International Financial Center (DIFC) in partnership with several international investment firms that provide attractive and safe investment opportunities.
The Scheme Aims To:
Ensure and protect the rights of employees and provide them with opportunities to develop their savings and end-of-service dues.
Attract the best talent and enhance the flexibility and attractiveness of the labour market in Dubai similar to other leading nations.
Drive financial literacy and foster a culture of saving among employees to assist in creating a financial plan that serves their future.
The scheme is the first of its kind in the region and follows international best practices. The initiative will enhance end-of-service indemnities in the Government of Dubai.
It provides a series of investment mechanisms in line with employees’ preferences, including the provisions of Islamic Sharia, with a guarantee of capital protection for employees who do not wish to invest.
The savings scheme is managed by a board of trustees and international investment institutions, under the supervision of the Dubai International Financial Centre.
After the launch, Sheikh Hamdan directed the formation of a steering committee headed by the General Secretariat of The Executive Council.
Members of the committee include
Department of Finance
Dubai Government Human Resources Department
Government of Dubai Legal Affairs Department
Supreme Legislation Committee
Dubai International Financial Centre
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 voluntarily, in accordance with the legislation in force and alignment with relevant federal and local authorities.
“Today I approved the ‘Savings Scheme for Foreign Employees in the Govt of Dubai’ at a @TECofDubai meeting. The first of its kind in the region, the Scheme will enhance govt staff’s end-of-service benefits. We are looking at extending the Scheme to private-sector employees as well https://t.co/m9O1SKywCn,” Hamdan tweeted.
The integrated system will offer government employees various saving opportunities across financial portfolios to grow their benefits and savings for the future.
Sheikh Hamdan bin Mohammed emphasized that the scheme will enhance the attractiveness of the government sector for qualified professionals across various fields while ensuring that all employees, whether citizens or residents, are provided with the support they require.
The Dubai Crown Prince added that the scheme will also play a pivotal role in the continuous development of the government sector’s capabilities. The initiative will ensure that Dubai remains an attractive career destination that appeals to outstanding talent.
The scheme will also protect and manage dues more effectively by depositing them in the system starting from the date of enrollment. This will not include any financial dues from former years of service to which the current legislation applies.
