Abu Dhabi: First Abu Dhabi Bank (FAB) has received initial approval to make FAB End of Service Benefits Funds available to UAE-based companies, giving employees the opportunity to grow their end of service benefits through the new government Alternative EOSB Savings Scheme (Savings Scheme).

According to Emirates News Agency, participating employers will pay monthly basic and voluntary contributions on behalf of their employees into the FAB End of Service Benefits Funds. These funds are tailored to meet the individual needs, values, and risk appetites of the employees.

Supporting the UAE government’s ambition to foster a more competitive labour market, the Savings Scheme is part of a Ministry of Human Resources and Emiratisation (MOHRE) initiative and has been approved by the Securities and Commodities Authority (SCA). The scheme aims to provide a structured savings mechanism for end of service benefits, thereby enhancing the financial security of employees.

The scheme is being launched under UAE Cabinet
Resolution No. (96) of 2023 and Ministerial Resolution No.668 of 2023, which introduced an alternative voluntary savings scheme for private sector employers and employees in the UAE, including those incorporated within free zones. This initiative is expected to benefit a large segment of the workforce, offering a more sustainable approach to end of service benefits.

FAB Asset Management has been selected as a strategic partner by the MOHRE and the SCA to deliver the government’s new Savings Scheme. This partnership underscores the commitment of FAB to align with national objectives and contribute to the economic development of the UAE.