Time really does fly and it’s hard to believe that Cabinet Resolution No. 96/2023 is already two years old!

For our newer readers (and for anyone still getting familiar with it), this regulation introduced the new End-of-Service Benefits (EOSB) Savings Scheme as an alternative to the gratuity system back in October 2023. (We at Pensions Monitor, like to call it the UAE EOSB Savings Scheme or simply, the national scheme, because it applies to all employers under the UAE Labour Law, whether on the mainland or in a freezone).

This is a game-changing scheme for employers, employees, and the UAE economy alike – which we’ve explained in over 85 freely available Pensions Monitor articles over the past year. But if you’d prefer to learn through a structured format that tests your understanding and even counts towards self-directed CPD credits, then do consider enrolling in our new EOSB training course, which is now live.

How far we’ve come

Cabinet Resolution 96/2023 started with quite a bang in October 2023. Within just a year, several fund managers announced their entry into the EOSB savings market, namely (in chronological order) Daman Investments, Lunate, National Bonds and First Abu Dhabi Bank (FAB).

Since their announced entries, each of them has managed to launch an EOSB Savings Plan. This is a complex undertaking as it involves setting up an umbrella fund, sub-fund(s), appointing a fund administrator, appointing a custodian, selecting IT provider(s), a scheme administrator and ensuring compliance with SCA regulations (Securities and Commodities Authority). Add to that, branding and identifying distribution channels and you see just how much work has gone into getting these Plans off the ground. So, congratulations to all the market participants who have managed to unveil an SCA-regulated EOSB Savings Plan!

But work for the fund managers did not end there.

To automate the monthly processes for companies, fund managers (through their IT partners) have been required to integrate their platforms with the Federal Data Network (FedNet). FedNet is the national system that holds records of all employer and employee data. This is a big collaboration that clearly signals the scheme’s path toward a mandatory future.

So far, at least one fund manager, FAB says it has already completed this integration through its tech provider Aurem.

There’s still some way to go before a full rollout

We at Pensions Monitor think the EOSB savings market in the UAE is still in its infancy. Here’s why:

• More providers are expected to come to market: Recently, Emirates NBD signed an MOU with Fidelity International, and rumours continue to swirl around other potential entrants. Will ADCB join in? Will DEWS and GO SAVER be allowed to serve the mainland too? What about Hayah Insurance or global fund houses like Franklin Templeton? More providers will mean more choice for employers and fairer competition in what could become a USD 100 billion market.
• More fund options are needed: So far, apart from Ghaf Benefits by Lunate, all the approved Plans offer only the mandatory capital guaranteed fund(s). It’s a good start, but the market will want more variety to suit different risk appetites and workforce needs. We expect to see new fund categories and partnerships with global managers emerge during 2026.
• System integrations are still underway: Some fund managers are still completing their integrations with FedNet as mentioned above. Chances are that the regulator will wait to have these integrations completed and sufficiently tested before the full rollout.
• Early adopters are serving as testers: And finally, whilst the scheme is still optional, there are a handful of companies that have already transitioned to the scheme. These early movers are effectively serving as pilot users, whose feedback will help determine what changes are required in operational process flows, and could perhaps even result in some regulatory tweaks before the full rollout.

So, when might the scheme become compulsory?

That’s the big question, and the short answer is: there’s no official date yet.

But here’s what we know:

Cabinet Resolution 96/2023 is currently open for public consultation until 28 February 2026, and has been since February 2025. That means the Ministry of Human Resources and Emiratisation (MOHRE) is actively seeking market feedback before the next phase.

Based on past national reforms such as the introduction of Corporate Tax or mandatory health insurance, we expect at least a 12-month window for companies to implement the scheme once a mandatory rollout is announced, likely in phases across sectors and company sizes.

Our thoughts

The EOSB reform journey has come a long way in just two years and we’d like to congratulate everyone in the industry who has helped move it forward.

Yes, there’s still a lot to do: more competition needed, fund options to expand, systems to integrate, and practical applications to test. But progress is clearly underway, and we think it’s only a matter of time before the word “mandatory” starts making headlines.

If you’re an employer, this voluntary phase is your window to prepare, not delay. Early movers will be far better positioned when the scheme becomes mandatory.

As always, we at Pensions Monitor do our best to keep our readers informed about all noteworthy developments on EOSB. We share MOHRE’s vision of a more secure and transparent workplace savings system and we wish the EOSB industry in the UAE every success going forward.