First Abu Dhabi Bank (FAB) has received final approval from the Ministry of Human Resources and Emiratisation (MOHRE) and the Securities and Commodities Authority (SCA) to launch its End of Service Benefits Funds across the UAE private sector.
The initiative, now available to all private sector entities in the UAE, allows businesses to invest in their employees’ end-of-service benefits (EOSB) as part of the government’s new Alternative EOSB Savings Scheme.
FAB has confirmed the first participating business has been successfully on-boarded.
UAE end-of-service benefits initiative
The funds aim to enhance employees’ financial security while simplifying end-of-service benefits management for employers.
To support this, FAB has introduced a digital platform integrated with the UAE Savings Scheme.
“The platform enables employers to process, track and manage all end-of-service contributions, while employees can view and monitor investments in real-time,” said a statement from the bank.
FAB has formed partnerships with several global firms to deliver the platform, including Apex Group for fund administration, Aurem for technology, and Deutsche Bank Securities for custody services.
The initiative aligns with the UAE government’s strategy to develop a competitive labour market.
Two investment options are currently available: the FAB End of Service Benefit Fund with Capital Protection and the FAB Islamic End of Service Benefit Fund with Capital Protection. Both invest in money market instruments, with the latter offering Shari’ah-compliance.
FAB plans to introduce additional risk-based investment options in both conventional and Shari’ah-compliant formats.
The funds are managed by FAB Asset Management, which has over 20 years of regional experience and serves clients including sovereign wealth funds, pension funds, financial institutions, and individuals.
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