Assessing the outlook for the UAE’s End-of-Service Benefits
In an exclusive interview with Pensions Monitor last week, it is clear that market sentiment is buoyant and the Securities and Commodities Authority (SCA) is positive that the End-of-Service Benefits (EOSB) market segment will see a further increase in activity in 2025. EOSB local fund managers continue to be approached by medium and large sized employers interested in providing this service to their employees.
The regulator has confirmed that, to date, 11 funds have been licensed, which are managed by four fund managers—a positive sign of early adoption despite its voluntary nature.
Transparency in EOSB Savings Schemes
The Authority also added that EOSB Fund Managers are required to continuously provide offering documents and fund performance data on their websites. This information should be accessible to the entire public, not just existing unit holders. This ensures transparency and allows potential employers to evaluate and compare available options before making an informed decision.
The Authority further clarified that local investment funds must prepare financial reports in line with IFRS, including semi-annual and annual reports audited by independent auditors. These reports, along with performance summaries and material disclosures, must be made publicly available on fund managers’ websites in both Arabic and English.
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Free learning course
Pensions Monitor also recently launched a complimentary learning course on the new EOSB Savings scheme. Designed for CEOs, CFOs and HR professionals, this course will give you a quick overview of the new scheme that could soon replace the current EOSB Gratuity system. Four providers are already in the market, and more are on the way, so understanding these changes now and early preparation is important.
The course has three modules. Each module consists of a short 3-minute video – meaning that the full briefing will take less than 10 minutes of your time.
