His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and President of the Dubai International Financial Center, stressed that creating the best and most stable working environments is one of the priorities of the center to maintain its leading position, by providing various guarantees to ensure to all its workers the supportive climate and the atmosphere that It enables them to present their best ideas and contributions that serve their institutions and confirm the leadership of the center among the best financial centers in the world.

“Dubai is embarking on a new stage in its accomplishment with clear objectives, the most important of which is consolidating its position as the capital of the new global economy. The Dubai International Financial Center is keen to continue its influential role in the heart of the UAE economic landscape by affirming its position as a major focal point for financial activities in Dubai and the region. We continue to Developing the capabilities of the center, updating its organizational frameworks, and maximizing the positive returns of its capabilities by developing initiatives and plans that serve to establish a role model for the professional work environment that has all the necessary elements to attract and motivate the best talents, in a way that supports the goals of the national agenda of the UAE Dubai Plan 2021 ".

This came on the occasion of the disclosure of the Dubai International Financial Center of the details of his plan for employee savings in the workplace, which will ensure the financial future of employees of companies based in the center, before the implementation of the plan as of February 1, 2020.

His Highness added: "There is no doubt that ensuring the financial future enhances the psychological stability of employees, gives them confidence and encourages them to distinguish ... Today the Dubai International Financial Center includes more than 24 thousand employees, and our aim is to provide them all with the appropriate conditions that enable them to start their business in a climate of blessing It has a sense of reassurance and helps them achieve the highest levels of confidence, both professionally and personally, reflecting the place Dubai has long enjoyed as the best place to live and work in the world. "

The initiative, which is to be launched in the Dubai International Financial Center, is a pioneer in the Middle East, Africa and South Asia, as of February 1, an innovative plan aimed at restructuring the current system of end-of-service benefits and benefits into a fully funded and managed savings plan. Specialist and pay-per-view specific contributions. Moreover, the initiative provides employees with the opportunity to make voluntary contributions, which allows all employees in the DIFC to plan and secure their financial future with ease.

The employee savings plan in the workplace will provide a low-cost investment platform for collecting and managing mandatory end-of-service contributions made by employers on behalf of their employees, along with other additional optional savings that employees initiate, including cash options or the like, especially for those Members who do not wish to use their contributions for any investment risks.

Benefits for employers and employees

The Dubai International Financial Center intends to support the ability of more than 2,300 companies operating within it to attract and retain the most prominent and efficient professionals from the region and the world, by providing employees with the ability to obtain returns from their savings through a reliable and organized plan. All companies based in the Dubai International Financial Center will also benefit from a continuous set of directives regarding their responsibilities towards their employees, in addition to ensuring that no other financial obligations are imposed once these contributions are paid.

In addition to the possibility of combining optional savings with employer contributions in order to ensure long-term savings goals are achieved, employees will also have the flexibility and ability to choose ways to manage their savings in proportion to the level of risk they prefer, including options consistent with Islamic law. Employees will be more certain about the level of cash flows when their end-of-service benefits are spread over the length of their service with the employer rather than just their end period. On the other hand, the workplace savings plan will protect employees in the event of financial failures of enterprises or their suspension from work, for example.

Dubai International Financial Center Governor Issa Kazim said: "The employee savings plan in the workplace confirms our full commitment to provide 24,000 professionals from the center with the ability to make informed choices regarding their financial affairs, which will lead to enhanced levels of protection and increase the returns they will receive when The end of their service or their retirement from work. "

He added: "From our location in the heart of the Dubai neighborhood for the future, we announce our commitment to enhancing the global business environment provided by the center while the laws and forward-looking regulations that it applies contribute to reshaping the future of the financial sector, while we continue to work to achieve our 2024 growth strategy. We work To unleash the growth potential of the DIFC through the upcoming expansion plan, so that the employee savings plan in the workplace will help us ensure that the most prominent and most talented global talent is drawn to the financial center, which gives business professionals easy access to Middle East, Africa and South Asia through this dynamic center is fully consistent with international best practices. "

An innovative plan

The DIFC was keen on selecting an award-winning expert organization to be the main service provider for the employee savings plan in the workplace, after an extensive and in-depth selection process that gave priority to organizations that have a proven and proven global record and have a presence in the center.

Accordingly, Equium, the global provider of professional services, will serve as the principal trustee on the employee savings plan in the workplace and the independent legal owner of employer contributions, as well as ensuring the employee's benefit. Meanwhile, Zurich Middle East and Zurich Workplace Solutions, its operating arm in the Dubai International Financial Center, are tasked with providing full support to employers and employees by managing and managing employee savings plan matters in the workplace. For its part, Mercer Investment Services will develop a proven and proven investment process for the master’s plan.

"All partners of our new plan enjoy a world-class reputation and their combined history dates back more than seven decades ago. Moreover, they all have always demonstrated exceptional levels of potential and commitment while they are in the Emirates."

The DIFC is keen to continuously develop its basic legislative structures to support companies and enable them to seize the opportunities in the fast-growing Middle East, Africa and South Asia region. The recent amendments to Employment Center No. 4 of 2020 for the DIFC replace the applicable end-of-service compensation system It has been in existence since the establishment of the center in 2004. Under these amendments, companies based in the center have a period extending until March 31, 2020 to join the qualification plan, which is considered the best plan in its category ever to join the employee savings plan in the workplace.

Independent supervisory board

The employee savings plan in the workplace will be subject to a great deal of regulatory transparency, through the supervisory board established by the President of the Dubai International Financial Center. The board consists of representatives from the DIFC Authority, a representative of each of the companies and employees working from the center, and an independent president who is charged with overseeing the continuity of governance and commercial aspects not subject to regulatory oversight of the plan. The Supervisory Board of the Dubai International Financial Center guarantees the protection of the interests of all employees and employers who are based in the center of their work. For its part, the DFSA will oversee the regulatory aspects of the duties of both the Secretary General and the Director of the plan.

Contributions and costs

The employee savings plan in the workplace is designed to be cost-effective for both employers and employees. The plan does not involve the payment of any fees to join or leave it for the employers associated with its management. While an annual management fee will be applied to employees ranging between 1.26 and 1.33%, based on the characteristics of the investment risks that they define, which covers the costs of services provided by the Chief Secretary, the managing director of the plan, the investment advisor and other costs of the plan, without applying any other fees to The launch. It should be noted that the competitive rate is in line with global best practices and corresponds to savings plans around the world.

Under the employee savings scheme in the workplace, the minimum employer contribution rates are designed to broadly coincide with the minimum entitlement rates stipulated under the current end-of-service benefits payment system. Accordingly, employers are required to pay a contribution of at least 5.83% of the basic salary of employees whose service period does not exceed five years. While the minimum contribution increases to 8.33% of the basic salary for employees who have five years or more of service.

The plan also gives employees an opportunity to make additional voluntary contributions by deduction from the salary, which contributes to finding more opportunities to raise the value of savings to meet future financial goals; and optional contributions can be made on a regular or one-time basis, deducted from the employee's salary.

Employers wishing to adopt a staff savings plan in the workplace must implement the qualification plan and submit it to the DIFC authority to obtain a compliance certificate.