The Securities and Commodities Authority (SCA) announced granting National Bonds and Daman Investment the first license of its kind to operate under the End-of-Service Benefits Savings Scheme in the UAE.
This move marks a significant milestone in managing end-of-service gratuity benefits for the UAE workforce. The savings funds under the Scheme would enable employees to invest their earned benefits in a secure and reliable manner, thus helping to safeguard their rights and grow their gratuities, thereby also promoting the UAE’s status as a regional hub for business and investment.
The SCA stated that the End-of-Service Benefits Regulations were updated to be aligned with the international best practices and standards, guided by the principles of transparency and governance. This is aimed to promote stability in the workplace and create innovative financial incentives that help enhance the overall well being of the workforce.
Commenting on this achievement, Her Excellency Dr. Maryam Al Suwaidi, the CEO of the SCA, said the SCA has been making tremendous efforts, in cooperatoin with strategic partners, to develop the investment funds industry and enhance its leading role in promoting economic growth in the UAE. “The asset management sector in the UAE is seeing remarkable improvement, which further bolsters the UAE’s status as a leading financial hub in the region and the world. The interest in this new license from domestic and international asset managers demonstrates the firm confidence that investors have in the UAE’s strong economic environment. These savings funds are expected to be instrumental in the continuation of this positive momentum by providing diverse and innovative investment solutions that help safeguard employee’s rights and generate stable returns, thereby enhancing the attractiveness of the labor-market and underscoring the UAE’s efforts in building a sustainable and competitive economy,” Dr. Al Suwaidi concluded.
