A massive shift: How alternative EOSB is reshaping companies and the future of employees

If you look closely at the financial tectonic plates shifting beneath the UAE’s corporate landscape right now, you’ll realise we are standing on the edge of something massive. The transition towards the Voluntary Alternative End-of-Service Benefits (EOSB) scheme isn't just a regulatory update. It is one of the most profound wealth creation and capital-efficiency opportunities this region has seen in decades. And frankly, the scale of what we are about to unlock is staggering.

As a CFO, I am trained to look at the cold, hard ground realities. For years, the traditional gratuity system has functioned as a stagnant liability. Billions of dirhams have sat on corporate balance sheets as un-funded mandates, doing absolutely nothing to generate returns for the employees who earned them, while simultaneously complicating cash flow forecasting for employers. As interim CEO, I am convinced this represents a powerful and differentiated staff retention solution. This alternative savings scheme has the ability to fundamentally reshape the employee value proposition, turning a traditional end-of-service liability into a compelling financial growth opportunity.

I also commend the Government of the UAE’s Capital Market Authority, and Ministry of Human Resources and Emiratisation for their ongoing efforts to promote alternative end-of-service benefits across the UAE.

Understanding the alternative EOSB framework

To appreciate why this is such a monumental pivot, we must look at what the Alternative End-of-Service Benefits framework actually signifies across the market. Fully compliant with Mainland UAE Labour Law and in line with Cabinet Resolution No. 96 of 2023, this scheme marks a structural shift away from the traditional defined benefit model. Under the historical set-up, companies accrue gratuities on paper, leaving them bound to corporate balance sheets until an employee exits.

The alternative framework introduces the possibility for employers to transition smoothly to a defined contribution model. This allows companies to fund their end-of-service obligations continuously throughout an employee's tenure. By making monthly contributions into a specialised savings scheme, corporate assets are completely separated and ring-fenced from workforce gratuities. For employees, this offers robust protection for their hard-earned benefits, alongside the opportunity to select investment options and generate market returns based on their investment selection. When leaving the company, the employee receives the full accumulated contributions plus all investment returns generated since invested in the scheme.

A powerful and differentiated staff retention solution

But here is where we need to be highly pragmatic: a macroeconomic shift of this magnitude cannot just be a playground for the massive conglomerates and multinational banks. The true lifeblood of the UAE economy is our small and medium enterprises (SMEs) and mid-sized corporate sectors.

By moving end-of-service liabilities off the balance sheet and into a structured, regulated savings scheme, business owners can protect themselves from sudden liquidity crunches when multiple employees transition. More importantly, they can offer their talent an access to the exact same world-class, wealth-building investment portfolios that the top-tier multinationals provide. We are determinedly democratising institutional-grade workplace savings, and it is going to be a substantial tool for corporates’ talent retention and attraction.

A new milestone for Sukoon’s corporate ecosystem

This is exactly why our announcement this week is a genuine game changer. Sukoon’s newly established Sukoon Workplace Savings Solutions Fund Administrator (SWSSFA) has officially received a mainland fund administrator licence from the Capital Market Authority (CMA). I cannot overstate how incredibly excited I am about this. It is a monumental milestone that we have been aggressively driving towards, and the opportunities it opens up for our partners are boundless.

This new mainland licence fundamentally solidifies Sukoon’s position as the absolute one-stop shop for corporate benefits in the UAE, through its respective dedicated companies. We are no longer just having siloed conversations about life and health insurance. We are optimising the entire employee financial lifecycle.

Bridging the market: A true one-stop shop

Sukoon’s wholly owned subsidiary, Sukoon Workplace Savings Solutions, operates as an administrator of an approved workplace savings scheme, GO SAVER Employee Money Purchase Scheme, registered in the Dubai International Financial Centre (DIFC). Now, with its newly established subsidiary in the mainland and the licence acquired from CMA, we will completely bridge the market. Whether your company is registered in a free zone, operates strictly on the mainland, or spans a complex mix of both, we will have the precise, regulated infrastructure ready to deploy and provide best in class service and peace of mind to employees and employers alike.

We are moving away from the era of fragmented corporate services. When a business partners with Sukoon today, they aren't just buying a protection policy. They are aligning with a financial powerhouse that can underwrite their corporate risk, insure their people, and now, actively administer and grow their employees' end-of-service wealth across any jurisdiction in the country through its respective dedicated companies.

The opportunity in front of us is vast, the numbers make undeniable sense, and the infrastructure is now officially in place. We are completely redefining what it means to protect and grow corporate wealth in the UAE, and we are just getting started.