United Arab Emirates: End-of-Service Savings Initiative Forthcoming for Private Sector Employees
September 15, 2023
The UAE Cabinet approved a new, optional, end-of-service savings initiative for private sector employees. The initiative will provide employees with low-risk investment options for end-of-service gratuity payments, overseen by the Securities and Commodities Authority and the Ministry of Human Resources and Emiratization, in order to increase their financial returns and savings. Employees are only eligible to receive their end-of-service gratuity payments upon termination of their employment if they have worked for the employer for at least one continuous year. Employees working in the private sector, in both the mainland and free zones, are eligible for this scheme. Public sector employees are also eligible to voluntarily opt into the scheme, although they have additional investment schemes in which they can take part. The scheme is expected to have three investment options: risk-free investment to maintain capital; risk-based investments where the risk level varies between low, medium and high; and Sharia-compliant investments. The new initiative will enhance the attractiveness of the UAE as a global hub for foreign talent as it provides a scheme for a monthly allowance or payment during retirement in the country. The government has not yet announced when the scheme will be implemented but further details are expected in coming months. Currently, there are limited investment options for foreign nationals in the private sector. In 2020, the Dubai Financial Center Employee Workplace Savings Scheme was introduced for private sector employees employed by companies in the Dubai Financial Center, and in 2022, the Golden Pension Plan was introduced by the Investment Corporation of Dubai.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
Explore more at Fragomen
Podcast
Associates Stephanie D. Weaver and Julia Manacher examine immigration issues emerging in a popular reality television series, including K-1 visa denials, consular non-reviewability, fraud findings and changing adjudication policies.
Blog post
Manager Dr. Adela Schmidt examines common misconceptions in German citizenship law, including birthright citizenship, dual citizenship, citizenship by descent and naturalization processing, and explains why eligibility often depends on specific legal requirements, timelines and documentation.
Awards
Partner Audrea Golding, Senior Associate Kyle Sommer and Senior Talent Development Director Wendy Milici have been named finalists in the 2026 TLC Lions Human Awards Americas, recognizing their contributions to human-centered leadership, workplace culture and inclusion.
Media mentions
Fragomen and SICPA have launched a global joint venture to develop an end-to-end digital identity platform that enables secure identity verification, document authentication and verifiable credential management.
Media mentions
Senior Counsel Mitch Wexler discusses how potential changes to H-1B visas, employment-based green cards and OPT could impact employers’ workforce planning and compliance obligations.
Media mentions
In a Leaders in Motion interview with World Business Travel Forum, Partner Ali Haider and Nomadic CEO Carsten Østberg discuss recent travel and mobility developments across the Middle East and practical considerations for employers managing cross-border talent in the region.
Media mentions
Partner Rachel Beardsley explains how new DHS guidance clarifies that dairy employers may use the H-2A program when they can demonstrate a temporary or seasonal labor need.
Fragomen news
Fragomen and SICPA announced the formation of a global joint venture to advance next-generation digital identity solutions for governments, enterprises and individuals.
Blog post
Senior Associate Kyle Sommer and Adam Schwartz, Director in the Global Mobility practice at Andersen, discuss how immigration and tax considerations intersect across common US immigration classifications and why early coordination can help travelers, employers and advisors reduce compliance risks and make more informed mobility decisions.
Podcast
In this episode of The Immigration Conversation, Senior Associates Sarah Melnick and Kimberly Elmazi discuss key considerations for foreign nationals planning international summer travel, including visa appointment planning, document preparation, consular interviews, port-of-entry procedures and I-94 review.
Podcast
UK Government Affairs Strategy Director Shuyeb Muquit is joined by Jonathan Thomas of the Social Market Foundation, Dr. Ben Brindle of the Migration Observatory, University of Oxford and Steve McCauley of the University of Cambridge to discuss what a new UK Prime Minister could mean for immigration policy, employers and workforce mobility.
Podcast
Associates Stephanie D. Weaver and Julia Manacher examine immigration issues emerging in a popular reality television series, including K-1 visa denials, consular non-reviewability, fraud findings and changing adjudication policies.
Blog post
Manager Dr. Adela Schmidt examines common misconceptions in German citizenship law, including birthright citizenship, dual citizenship, citizenship by descent and naturalization processing, and explains why eligibility often depends on specific legal requirements, timelines and documentation.
Awards
Partner Audrea Golding, Senior Associate Kyle Sommer and Senior Talent Development Director Wendy Milici have been named finalists in the 2026 TLC Lions Human Awards Americas, recognizing their contributions to human-centered leadership, workplace culture and inclusion.
Media mentions
Fragomen and SICPA have launched a global joint venture to develop an end-to-end digital identity platform that enables secure identity verification, document authentication and verifiable credential management.
Media mentions
Senior Counsel Mitch Wexler discusses how potential changes to H-1B visas, employment-based green cards and OPT could impact employers’ workforce planning and compliance obligations.
Media mentions
In a Leaders in Motion interview with World Business Travel Forum, Partner Ali Haider and Nomadic CEO Carsten Østberg discuss recent travel and mobility developments across the Middle East and practical considerations for employers managing cross-border talent in the region.
Media mentions
Partner Rachel Beardsley explains how new DHS guidance clarifies that dairy employers may use the H-2A program when they can demonstrate a temporary or seasonal labor need.
Fragomen news
Fragomen and SICPA announced the formation of a global joint venture to advance next-generation digital identity solutions for governments, enterprises and individuals.
Blog post
Senior Associate Kyle Sommer and Adam Schwartz, Director in the Global Mobility practice at Andersen, discuss how immigration and tax considerations intersect across common US immigration classifications and why early coordination can help travelers, employers and advisors reduce compliance risks and make more informed mobility decisions.
Podcast
In this episode of The Immigration Conversation, Senior Associates Sarah Melnick and Kimberly Elmazi discuss key considerations for foreign nationals planning international summer travel, including visa appointment planning, document preparation, consular interviews, port-of-entry procedures and I-94 review.
Podcast
UK Government Affairs Strategy Director Shuyeb Muquit is joined by Jonathan Thomas of the Social Market Foundation, Dr. Ben Brindle of the Migration Observatory, University of Oxford and Steve McCauley of the University of Cambridge to discuss what a new UK Prime Minister could mean for immigration policy, employers and workforce mobility.
