Expats in the UAE could soon be able to join a retirement saving scheme under a new initiative.
The Federal Authority for Government Human Resources (FAHR) has held a meeting with major firms to discuss the potential system.
It would include an enhanced gratuity scheme and savings programme for the private sector.
Dr Abdul Rahman Abdul Manan Al Awar, director=general of FAHR, said: “With accelerated technological advancements and the increased retirement age and years of service, there is an urgent need in the region to establish investment funds to manage retirement and end-of-service benefits, which will provide a saving opportunity to all employees in the UAE and the regional labour markets.”
Al Awar added: “I believe the idea of creating a savings system for end-of-service benefits in all sectors is an important strategic step as it will be the first of its kind in the region.
“The retirement funds will help employees plan properly by taking advantage of end-of-service benefits, enabling them to make use of their financial resources and creating jobs for new generations.”
Other departments involved in the plans include the Ministry of Finance, Ministry of Economy, Departments of Economic Development and the Securities and Commodities Authority.
