FAB End Of Service Benefits Funds Secure Final Approval To Enhance Employee Financial Security In UAE

First Abu Dhabi Bank (FAB) has secured final approval from the Ministry of Human Resources and Emiratisation (MOHRE) and the Securities and Commodities Authority (SCA) to introduce its FAB End of Service Benefits Funds. This initiative is now accessible to all private sector companies in the UAE, allowing them to enhance their employees’ end-of-service benefits (EOSB) through the UAE government’s new Alternative EOSB Savings Scheme. The first business has already joined this scheme.

The FAB End of Service Benefits Funds aim to improve long-term financial security for employees by simplifying EOSB management. This helps businesses attract and retain talent more effectively. To facilitate easy access, FAB has launched a digital platform integrated with the UAE Savings Scheme, providing a secure way for businesses and employees to manage end-of-service benefits efficiently.

The digital platform features an intuitive interface that allows employers to process, track, and manage all end-of-service contributions. Employees can also view and monitor their investments in real-time, catering to the needs of a modern workforce familiar with digital tools. This platform is designed to enhance user experience and ensure seamless adoption by both employers and employees.

FAB has collaborated with global industry leaders like Apex Group for fund administration, Aurem for technology solutions, and Deutsche Bank (DB) Securities for custody services. These partnerships ensure a secure and reliable platform that aligns with the UAE government's vision of creating a competitive labour market ready for the future.

The FAB End of Service Benefits Funds currently offer two capital-protected investment options: one invests in money market instruments, while the other focuses on Islamic money market instruments. Both options aim to provide stability and liquidity. FAB plans to introduce additional risk-based investment choices soon, offering conventional and Shari’ah-compliant strategies tailored to various financial objectives.

Managed by FAB Asset Management, these funds benefit from over two decades of regional expertise across different asset classes. The client base includes sovereign wealth funds, pension funds, foundations, financial institutions, family offices, insurance companies, and individuals.

Strategic Partnerships Enhance User Experience

This advancement modernises the landscape of end-of-service benefits while supporting the UAE’s broader vision of fostering financial growth and stability for employees. By improving financial outcomes, FAB End of Service Benefits Funds create advantages for both employers through streamlined benefit management and employees who gain better control over their financial futures.

This initiative highlights FAB's dedication to innovation and strategic collaboration with the UAE government. It drives the evolution of workforce benefit structures to meet today’s dynamic market demands. The digital-first approach ensures a smooth experience for users while enhancing adoption rates among businesses and employees alike.

The introduction of these funds underscores FAB's commitment to supporting improved financial outcomes for employees while providing employers with efficient benefit management solutions. As part of this initiative, FAB continues to play a crucial role in integrating innovative systems that align with national goals for economic growth and stability.

With inputs from WAM