DIFC's Employee Workplace Savings Scheme Reaches Milestone of Billion in Assets: A New Paradigm for Employee Benefits in Dubai
In a significant development for the financial services sector, the Dubai International Financial Centre (DIFC) recently announced that its pioneering initiative, the DIFC Employee Workplace Savings (DEWS) scheme, has surpassed the notable threshold of billion in Assets under Administration (AuA). This remarkable milestone marks a transformative shift in how end-of-service benefits are managed, emphasizing transparency, sustainability, and financial security for employees.
Launched in February 2020 as the first initiative of its kind within the region, DEWS has effectively replaced the traditional gratuity system with a robust, fully-funded, and professionally managed savings plan. This new model not only promotes the long-term financial welfare of employees but also allows employers to implement modern workforce benefit practices that parallel global standards.
To date, DEWS has attracted participation from 2,726 employers, involving 74,323 individuals who now enjoy the benefits of regulated savings and the opportunity to enhance their end-of-service benefits through various investment options. The rapid growth of the scheme underlines the widespread trust and confidence among both employers and employees, as well as the integrity of DIFC’s regulatory framework, which is known for its world-class governance standards. Beyond the billion in assets under administration, the scheme has facilitated payouts exceeding 0 million to former participants, further solidifying its vital role in the financial ecosystem.
His Excellency Abdulla Mohammed Al Basti, Secretary General of The Executive Council of Dubai, emphasized the alignment of DEWS with Dubai’s broader vision of sustainable growth. “Dubai continues to pursue sustainable growth by placing people at the heart of this development,” he noted, reflecting the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. This commitment extends to the objectives of the Dubai Economic Agenda (D33), which seeks to enhance employee benefits and provide long-term security, thereby reinforcing Dubai’s stature as a competitive global city.
The success of the DEWS scheme serves as a tangible illustration of the Dubai Government’s commitment to fostering new investment opportunities for residents and industries alike. Such innovative initiatives play a critical role in cultivating a vibrant economic landscape and securing a prosperous future for the community. Furthermore, effective collaborations between public and private sectors underpin the success of DEWS, allowing for synergies that align with the goals of the Dubai Economic Agenda while enhancing employee welfare.
His Excellency Essa Kazim, Governor of DIFC, affirmed, “Reaching over billion in assets under administration in just over five years is a remarkable achievement for DEWS.” He stated that the scheme has not only safeguarded the financial futures of nearly 75,000 employees but has also strengthened Dubai and DIFC’s ability to attract and retain top global talent. This aspect is essential for positioning Dubai as one of the leading global financial centers while enhancing its appeal as a prime location for living and working.
The operational success of DEWS is also attributed to the expertise of its specialized partners. Equiom acts as the scheme’s master trustee, providing independent oversight to protect the interests of members, while Zurich Workplace Solutions (Middle East) serves as the plan administrator, ensuring efficient operations and service delivery. Mercer, a renowned global investment advisor, manages the underlying funds, offering employees access to a diversified and professionally managed array of investment options.
As DEWS continues to solidify its standing as a benchmark for workplace savings in the region, it empowers employees with enhanced financial security and peace of mind. This initiative stands as a testament to Dubai’s aspiration to be a progressive and inclusive financial hub, poised to lead the market in offering innovative employee benefits.
While the journey is just beginning, the ripple effects of the DEWS initiative have the potential to redefine employee benefits across the Middle East, setting a standard for others to emulate. As employers and employees alike embrace this new model, Dubai is not just securing financial welfare for its workforce but is also asserting its ambition as a vital player in the global economic arena.
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