Two companies were accredited by the Ministry of Human Resources and Emiratisation and the Securities and Commodities Authority to operate under alternative end-of-service benefits scheme, it was announced on Thursday.
Lunate and Daman Investments are the first accredited companies to launch two savings funds that protect capital and comply with Islamic Sharia. They will also be authorised to sign agreements with employers and accept voluntary subscriptions, in accordance with a strict set of standards and obligations.
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The alternative end-of-service scheme was introduced in November last year for employees working in public, private and free zone companies to offer them an alternative system to the existing gratuity payment practice. Employers have the option to choose the scheme.
The Savings Scheme aims to invest financial sums allocated for end-of-service benefits for private sector workers in investment funds, with the aim of growing workers’ savings and allowing them to benefit from return on their end-of-service investments.
Fund managers are required to provide investors with a basic option for investment with capital guaranteed. They must also make available Shariah-compliant investment options; and must manage a minimum of Dh1 billion worth of funds and assets. They should have experience in managing investment funds for at least 3 years; are required to provide employers and beneficiaries with semi-annual account statements.
Companies can register their employees by contacting Lunate through its website or by calling 026927213, or sending an email to [email protected]. Daman Investments can also be reached through its website or call center (046109666) or email ([email protected]).
Mohre said it has created a dedicated page on its website providing details about the authorised savings funds and registration processes.