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UAE introduces end-of-service benefits system

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The UAE Cabinet has approved an innovative system that allows employees in the private sector and free zones to invest their end-of-service benefits, and it’s optional for employers to participate.

Under this system, a savings and investment fund will be established, overseen by the Securities and Commodities Authority in collaboration with the Ministry of Human Resources and Emiratisation. Employees will have the opportunity to invest their end-of-service benefits in the fund, with multiple investment options available.

The announcement was made during a Cabinet meeting chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. The primary objective is to safeguard workers’ savings while providing stability to their families and ensuring their rights. This scheme is open not only to private sector employees but also to government employees.

The Process:

Employers can choose to enroll their workers in this system and make monthly contributions. The system offers three investment options, including a risk-free capital guarantee, various risk levels for traditional investments, and Sharia-compliant investments. Upon the termination of the employment relationship, employees will receive their end-of-service benefits and returns.

Over time, this scheme is expected to cost employers less than the traditional system and will help in retaining talent by offering more attractive terms for employees. Many experts have highlighted the dependence of UAE residents on their gratuity as a retirement fund. In a recent survey, 82% of workers expressed openness to having their gratuity invested on their behalf. Dubai had previously introduced a similar scheme for expatriates working in government departments in 2022, offering various savings opportunities and boosting their benefits and savings.

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UAE Central Bank fines local bank Dh3 million over anti-money laundering failures

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The Central Bank of the UAE (CBUAE) has imposed a financial penalty of Dh3 million on a local bank for failing to comply with anti-money laundering (AML) regulations.

The fine was issued under Article 14 of Federal Decree Law No. (20) of 2018 on Anti-Money Laundering and Combatting the Financing of Terrorism and Illegal Organisations, as well as Article 137 of the Decretal Federal Law No. (14) of 2018 concerning the Central Bank and regulation of financial institutions.

The CBUAE said the penalty followed an investigation which found that the bank had not met regulatory requirements outlined in UAE legislation to combat financial crime.

In a statement, the Central Bank reaffirmed its commitment to maintaining the transparency and integrity of the country’s financial system. “We continue to supervise and regulate all licensed financial institutions to ensure full compliance with UAE laws, regulations, and standards,” the authority said.

The name of the bank was not disclosed.

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Dubai’s RTA steps up inspections of buses to ensure safety

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Dubai’s Roads and Transport Authority (RTA) has urged transport operators to strictly follow regulations covering all modes of passenger transport, including chartered buses, tourist services, and international bus trips.

This comes after RTA completed over 15,500 inspections targeting operators in these sectors, as part of ongoing efforts to raise service standards and ensure safety.

“The inspections weren’t just about issuing violations,” said Saeed Al Balooshi, Director of Passenger Transport Activities Monitoring at RTA. “They’re designed to improve service quality and ensure operators meet the rules that keep Dubai’s transport sector running smoothly.”

Checks included verifying safety measures onboard and ensuring all required licences were in place. The RTA also teamed up with other authorities, including Dubai Police and the General Directorate of Residency and Foreigners Affairs at Hatta Border Post, to tackle misuse and irregularities in cross-border transport services.

Al Balooshi added that the authority is using new technologies to make inspections more effective by analysing violations and measuring the impact of enforcement campaigns. “Our goal is to ensure a reliable and high-quality experience for residents, visitors, and tourists, and to protect the reputation of Dubai’s public transport sector,” he said.

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New paid parking zones announced in Abu Dhabi

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Residents and motorists in Abu Dhabi should take note: new Mawaqif paid parking zones have been activated in several areas across the city, Q Mobility announced on Thursday, July 10.

The newly introduced paid zones include:

  • Eastern Mangroves
  • Dolphin Park
  • Al Khaleej Al Arabi Street sectors – specifically at Al Khaleej Al Arabi Park 1, 2, 4, and 5
  • Al Qurm Plaza

The rollout of the Mawaqif system in these areas is now officially in effect, aligning with Abu Dhabi’s parking regulations.

  • Standard Parking – black and blue curbs:
    • Dh2 an hour
    • Dh15 for 24-hour parking
  • Premium Parking Abu Dhabi – white and blue curbs: AED 3 an hour

According to Q Mobility, this move is part of ongoing efforts to better regulate vehicle movement, ease congestion, and improve the overall efficiency of public parking across the emirate. The changes follow the completion of infrastructure upgrades such as curb painting, installation of directional and awareness signage, and public notifications.

The company has also encouraged drivers to make use of the Darb app for digital payment and to carefully follow posted instructions to avoid fines.

The expansion of Mawaqif is part of a broader strategy aimed at improving traffic flow and providing smarter, more streamlined parking solutions within Abu Dhabi Island and beyond.

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