Lunate receives MoHRE, SCA initial nod to offer EoSB investment offerings

ADGM-based Lunate Capital (Lunate) has received initial authorisation from the Ministry of Human Resources and Emiratisation (MoHRE) and the Securities & Commodities Authority (SCA) to become the first Abu Dhabi-based fund manager and Administrator of the UAE’s voluntary alternative end-of-service benefits (EoSB) scheme through the newly licensed Lunate EoSB Fund.

Approved by a UAE Cabinet Resolution in 2023, the Voluntary EoSB scheme offers an alternative to the traditional single-payout system for end-of-service benefits. It allows private sector employers in the UAE to invest employees’ end-of-service gratuities as monthly contributions into licensed investment funds accredited by MoHRE and the SCA.

This scheme aims to provide more control and choice over savings plans, marking a significant step forward in safeguarding workers’ financial entitlements and enhancing the UAE’s attractiveness as a destination to work and live.

Lunate is the first Abu Dhabi-based entity to receive initial authorisation under this scheme.

The company’s local and global investment expertise will be leveraged to provide participants and their employees with opportunities to grow their entitlements through professionally managed investment funds.

Lunate offerings under the EoSB scheme

Lunate plans to offer a selection of six investment funds, including both conventional and Shariah-compliant investment strategies. This will allow employers and employees to allocate capital across these strategies, with employees having the option to customise their investment approach based on individual risk preferences. Additionally, employers can make extra contributions, and employees can voluntarily contribute an incremental percentage of their salary to the EoSB Fund.

Seif Fikry, managing partner at Lunate, expressed gratitude for the initial authorisation: “It is a privilege to have received initial authorisation as the first Abu Dhabi-based provider for the voluntary alternative EoSB scheme by MoHRE and the SCA.

“We welcome the statement issued by both entities and the trust in Lunate’s reputation and experience in the management of investment funds. The current EoSB system represents a significant pool of capital, and with the transition to a monthly commitment that can be invested by employees, there is a notable opportunity for employees and the UAE’s capital markets to draw value from this development.”

Sherif Salem, partner and head of Public Markets, added: “We are pleased to be able to offer a range of risk-based investment options that will empower employee participants to achieve their financial goals, all the while supporting employers in managing their obligations efficiently.

“The EoSB scheme represents a transformative approach to end-of-service benefits for UAE workers, offering employees increased control over their entitlements while empowering them to fulfill long-term investment goals.”