Lunate receives initial approval by MoHRE and SCA to offer voluntary alternative EoSB Solutions in the UAE

Announcements

Announcements

July 08, 2024

  • As the first Abu Dhabi-based provider with initial authorisation by MoHRE and the SCA, Lunate’s EoSB Fund will offer a choice of sub-funds including conventional and Shariah-compliant investment strategies
  • The EoSB scheme, approved by a UAE Cabinet Resolution in 2023, will offer employers and their employees more control and choice over savings plans

Abu Dhabi, 8 July, 2024 – Lunate Capital LLC (“Lunate”) today announced that it has received initial authorisation by the Ministry of Human Resources and Emiratisation (“MoHRE”) and the Securities & Commodities Authority (“SCA”) to serve as the first Abu Dhabi-based Fund Manager and Administrator of the UAE’s Voluntary Alternative End-of-Service Benefits (“EoSB”) Scheme through the newly licensed Lunate EoSB Fund (the “Fund”). Through a joint committee, MoHRE and the SCA granted initial approval for Lunate’s application after ensuring compliance with regulatory requirements and conditions.

The Voluntary EoSB Scheme was approved by a UAE Cabinet Resolution in 2023 as a voluntary scheme, which serves as an alternative to the current single-payout system for employers, allowing private sector employers in the UAE the ability to invest an employee’s end of service gratuity as a monthly contribution to licensed investment funds, accredited by MoHRE and the SCA, on their behalf. The Voluntary EoSB Scheme marks a significant step forward in safeguarding workers’ financial entitlements and enhancing the appeal of the UAE as a destination to work and live.

Lunate is the first Abu Dhabi-based entity to be granted initial authorisation by MoHRE and the SCA as part of the official roll out of the Voluntary EoSB Scheme. Lunate will leverage its local and global investment expertise to provide participants and their employees with opportunities to grow their entitlements through professionally managed investment funds.

Lunate is planning to initially offer a selection of six investment funds including conventional and Shariah-compliant investment strategies to participants in the EoSB Fund – enabling both employers and employees to allocate capital across these strategies. Employees will additionally have the opportunity to customize their investment approach to align with their individual risk preferences. Employers will be able to make additional contributions, as will employees, who can contribute an incremental percentage of their salary to the EosB Fund voluntarily.  

Seif Fikry, Managing Partner at Lunate, commented: "It is a privilege to have received initial authorisation as the first Abu Dhabi-based provider for the Voluntary Alternative End-of-Service Benefits Scheme by MoHRE and the SCA. We welcome the statement issued by both entities and the trust in Lunate’s reputation and experience in the management of investment funds. The current EoSB system represents a significant pool of capital, and with the transition to a monthly commitment that can be invested by employees, there is a notable opportunity for employees and the UAE’s capital markets to draw value from this development.”

Sherif Salem, Partner and Head of Public Markets added "We are pleased to be able to offer a range of risk-based investment options that will empower employee participants to achieve their financial goals, all the while supporting employers in managing their obligations efficiently. The EoSB scheme represents a transformative approach to end-of-service benefits for UAE workers, offering employees increased control over their entitlements while empowering them to fulfill long-term investment goals.”

For more information, participants can reach out to eosb@lunate.com or contact +971-2-692-7213.