FAB’s EOSB funds secure initial approval from MOHRE, SCA

Image: FAB

First Abu Dhabi Bank (FAB) has obtained initial approval to provide its end-of-service benefits (EOSB) funds to UAE-based employers.

Through this initiative, employees now have the chance to grow their end-of-service benefits using the UAE government’s new Alternative End-of-Service Benefits Savings Scheme, aimed at fostering financial security and supporting a competitive labour market.

FAB’s EOSB Funds allow employers to make regular basic and optional contributions on behalf of employees. These contributions are invested according to individual needs and risk preferences, helping to expand workers’ savings beyond traditional end-of-service gratuity provisions.

This offering, which has received initial approval from the Securities and Commodities Authority (SCA) and Ministry of Human Resources and Emiratisation (MOHRE), aligns with the UAE government’s ambition to attract global talent by enhancing labour market flexibility.

FAB’s key EOSB funds for employees’ financial growth

Employees participating in FAB’s EOSB Funds can access a variety of investment options tailored to different risk profiles, including:

– Shari’ah-compliant funds for employees seeking investments that align with Islamic finance principles.
– Capital-protected funds specifically designed for unskilled workers, offering secure, low-risk growth.
– A diverse range of other investment funds with options across varying risk levels.

These options provide employees with opportunities to enhance their financial wellbeing, while also enabling the bank to further invest in the UAE economy’s growth.

With the flexibility to opt into tailored financial products, employees can actively grow their end-of-service benefits, creating a significant advantage for expatriates and local employees alike.

Leveraging its expertise

As the scheme’s strategic partner, FAB Asset Management brings extensive expertise to the UAE government’s Savings Scheme, offering professionally managed Shari’ah-compliant and conventional funds.

With over two decades of experience across the Middle East and North Africa (MENA) region, FAB Asset Management is well-positioned to support MOHRE’s objectives, using its investment management capabilities to bolster both employee financial security and company efficiency.

FAB’s EOSB Funds also simplify the administrative process for employers, enabling them to register through the bank’s EOSB online portal, which provides comprehensive information on employee benefits.

Meanwhile, employees can easily access and monitor their investments via the FAB EOSB app, offering a seamless, transparent view of their funds’ performance.

Read: Abu Dhabi: FAB reports Dhs12.9bn in net profit for Jan-Sept ’24