The Dubai government on Wednesday launched a new savings scheme for expat employees working in the public sector.
The scheme, the first of its kind in the region, aims to provide employees an opportunity to enhance their savings and end-of-service dues.
Here are the key features of the scheme:
1. It will enhance end-of-service indemnities in the government of Dubai
2. Employees will be able to choose multiple investment structures including traditional investment funds, and others compatible with the Shariah law. Employees who do not wish to invest their benefits will also be provided with options that ensure capital protection.
3. It will deposit financial dues starting from the date of plan enrolment
4. It will study the extent to which this system can be voluntarily applied to private sector employees in Dubai, following coordination with relevant federal and local entities
5. It will be managed by a board of trustees and international investment institutions, under the supervision of the Dubai International Financial Centre
6. The scheme will guarantee that all government employees and their families will be provided with growth opportunities and a high quality of life, throughout their career and at the end of their service.
7. The scheme provides employees the opportunity to save across different financial portfolios to grow their savings.
8. It will also protect and manage dues more effectively by depositing them in the scheme starting from the date of enrolment. It will not include any financial dues from former years of service.
9. A 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.
10. The scheme has been conceptualised after the DIFC successfully implemented it in 2020 for employees working under its ambit.