Dubai To Introduce Pension Scheme For Expatriates

02 Apr 2012

The Dubai authorities have undertaken a feasibility study for setting up a rather ambitious plan for a pension scheme for expatriates. The authorities are in touch with various departments of Dubai government and will soon announce the scheme this year end.

The scheme is being formulated by the Department of Economic Development in Dubai (DED) and this scheme will cover both the private as well as public sector employees. This decision of the Dubai authorities will make it the first city in the area to introduce a pension scheme for expatriates, for those who do not pay any income tax, including other emirates.

The project will be introduced in phases initially veering employees in large companies as well as public establishment. Also, the first phase will cover companies which are already giving out pensions to its employees.

It is understood that preference would be given to federal form of pension funding arrangement. The new pension fund is primarily meant to encourage business investment in Dubai and also make it a better city to live in. The proposed pension scheme will certainly ensure financial and social stability. It would also reduce the several financial disputes of the expatriates.