Great necessity to set up workers ‘Gratuity Funds’ in UAE

By Angel Chan

DUBAI 27 February 2019: There is an urgent need in the region to establish investment funds to manage retirement and end-of-service benefits, according to Dr. Abdulrahman Abdul Mannan Al Awar, Director General of the Federal Authority for Government Human Resources.

He said accelerating global technological advancements, and the increased retirement age and years of service, leave no doubt that there is an excellent opportunity for such funds, which will provide a saving opportunity to all the employees in the UAE and the regional labor markets.

It will increase investment in our domestic economies.

Speaking at WIEOSB conference in Dubai yesterday, he 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 organizations such as Emirates airlines, which has added to the competitiveness of Emirates Airlines, and such projects will have a significant impact on the social and economic levels according to latest Actuarial studies, recently done in the United Arab Emirates.

Participants in the conference agreed that… a new integrated package of financial services will benefit a number of vital economic sectors such as banking, insurance, investment, and others.

They also pointed out that there are significant social and economic benefits that can be gained when applying and adopting innovative systems to manage workers’ incentives, including enhancing the UAE’s ranking in attractiveness as a working environment, and a preferred destination for retirement, and the consequent strengthening of economic sectors related to consumers such as real estate, retail and governmental services.

Organized by Mondial LLC, a leading financial advisory firm in UAE on the subject of “severance pay” strategies, the one-day conference addressed problems and find solutions currently experienced with the End of Service Benefits. This issue affects every working visa holder in the country. Therefore, this topic should be of interest to all business owners and HR Departments in the nation.

 

Dubai Gazette