UAE: Govt calls for establishing services benefits funds
Source: Middle East Insurance Review | Apr 2019
The accelerating global technological advancements and the increased retirement age and years of service show there is an excellent opportunity and an urgent need in the region to establish investment funds to manage retirement and end-of-service benefits (EOSB), which will provide a saving opportunity to all the employees in the UAE and the region labour markets, said Dr Abdulrahman Abdul Mannan Al Awar, director general of the Federal Authority for Government Human Resources (FAHR).
Speaking at the first ‘Workers Incentives and End of Services Benefits’ (WIEOSB) conference held in Dubai in February under the patronage of FAHR, he said the move will lift investment in the domestic economies, while considering market stability and the low risks associated with such investment opportunities in the UAE.
The investment funds will help employees plan properly by taking advantage of ESOB, enabling them to make use of their financial resources and creating jobs for new generations, Dr Al Awar said.
He also explained that creating saving schemes and funds in all sectors is an important strategic step and a new experience of its kind across the region. There are successful global practices in this field, as well as in the UAE with the leading organisations such as Emirates Airlines, which has added to the competitiveness of the airline, and such projects will have a significant impact on the social and economic levels according to latest actuarial studies done recently in the UAE.
Organised by Mondial LLC, a leading financial advisory firm in UAE on the subject of ‘severance pay’ strategies, the one-day conference aimed to address problems and find solutions currently experienced with ESOB. M