The Ministry of Human Resources and Emiratisation and the Securities and Commodities Authority have accredited two companies, Lunate and Daman Investments, to operate under an alternative end-of-service benefits scheme. These companies will be the first to offer savings funds that protect capital and comply with Islamic Sharia. They will have the authority to sign agreements with employers and accept voluntary subscriptions while adhering to strict standards and obligations.
The alternative end-of-service scheme was introduced in November last year to provide employees in public, private, and free zone companies with an alternative to the existing gratuity payment practice. Employers now have the option to choose this scheme for their employees. The Savings Scheme aims to invest financial sums allocated for end-of-service benefits for private sector workers in investment funds, with the goal of growing workers’ savings and allowing them to benefit from return on their end-of-service investments.
Fund managers must provide investors with a basic option for investment with capital guaranteed, as well as Shariah-compliant investment options. They must manage a minimum of Dh1 billion worth of funds and assets, have at least 3 years of experience in managing investment funds, and provide semi-annual account statements to employers and beneficiaries. Companies can register their employees by contacting Lunate through its website, phone, or email; or Daman Investments through its website, call center, or email.
The Ministry of Human Resources and Emiratisation has created a dedicated page on its website providing details about the authorised savings funds and registration processes for the alternative end-of-service benefits scheme. This allows employees and employers to easily access information and take advantage of the new scheme. With the accreditation of companies like Lunate and Daman Investments, employees now have more options for growing their end-of-service benefits and ensuring financial stability in the future.
The two accredited companies, Lunate and Daman Investments, mark a significant step towards providing employees in the private sector with alternative end-of-service benefits that comply with Islamic Sharia. By investing financial sums allocated for end-of-service benefits in investment funds, workers can grow their savings and benefit from return on their investments. Employers now have the option to choose this scheme for their employees, which offers more flexibility and potential growth for their end-of-service benefits.
Overall, the accreditation of Lunate and Daman Investments by the Ministry of Human Resources and Emiratisation and the Securities and Commodities Authority signifies a positive development for employees in the private sector. With the introduction of the alternative end-of-service benefits scheme, workers now have the opportunity to grow their savings and benefit from investment returns. Employers can choose this scheme for their employees, providing them with a more secure and potentially lucrative option for their end-of-service benefits.
