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.
Sharjah City Municipality has introduced a residential parking permit system in Al-Fisht, Sharqan and Al-Rifa’a to reserve parking spaces for residents and prevent misuse.
The new system is aimed at improving parking management and ensuring residents have better access to spaces near their homes.
Inspection campaign
Alongside the rollout, the Municipality has conducted inspections to identify parking violations in the three areas.
One of the main issues found was non-residents parking outside residential properties to avoid paying public parking fees.
Authorities have warned motorists who do not live in these areas against using residential parking spaces.
Violators could face legal and administrative action.
What residents should know
The residential permit system is intended to ensure designated parking spaces are used by eligible residents, while reducing misuse by motorists seeking to avoid public parking charges.
Motorists in Abu Dhabi can use public parking for free and avoid Darb toll charges at four gates on Friday, August 28, for the Prophet Muhammad’s (PBUH) birthday public holiday.
Q Mobility said regular toll and parking charges will resume on Saturday, August 29.
Which toll gates are free?
Darb tolls will be waived on Friday at:
Sas Al Nakhl
Al Maqta
Rabdan
Al Saadiyat
However, Al Qurm and Ghantout toll gates will remain chargeable. Both operate 24/7 at AED 4 per crossing.
Mawaqif parking free
Public Mawaqif parking across Abu Dhabi will also be free on August 28.
The exemption does not cover multi-storey public parking buildings, where normal charges will continue.
Regular Mawaqif fees will return on Saturday, August 29.
Q Mobility Centres Closed
Q Mobility Customer Happiness Centres in Abu Dhabi and Al Ain will be closed on Friday and reopen on Monday, August 31.
Motorists can continue using Q Mobility’s digital services 24/7 through its website, the Darb app and TAMM.
Dubai’s new legislation governing shared accommodation officially came into effect on August 26. Applying across the entire emirate, including free zones and special development zones, the comprehensive framework is designed to eliminate dangerous, overcrowded, and unauthorised partition rentals while establishing formal licensing standards for communal living.
What qualifies as shared housing?
Under the law, shared housing is defined as any residential property where individuals or families occupy private designated living spaces while sharing common facilities like kitchens, bathrooms, and dining areas.
Who is permitted to rent out shared units?
The new framework strictly bans unauthorised subletting by tenants. A primary tenant can no longer rent out individual bedrooms, partitioned spaces, or bed spaces directly to roommates or third parties.
Only the following entities can legally offer shared housing:
Registered Property Owners: Leasing spaces directly to occupants under formal contracts.
Licensed Management Companies: Authorised operators contracted by the owner to run and lease the property.
Licensed Operators Subletting Master Leases: Approved commercial entities leasing an entire property from the owner to sublet authorised units to tenants.
Penalties for violations
Authorities have introduced strict financial and operational consequences for non-compliance:
Initial Fines: Dh500 up to Dh500,000, depending on the severity of the violation.
Repeat Violations: Fines double for repeat offences committed within one year, capped at Dh1,000,000.
Operational Sanctions: Authorities may suspend operations for up to 6 months, revoke commercial licenses, cancel permits, disconnect utilities, seize equipment, or order the direct evacuation of non-compliant properties.
Grace period & tenant protection
Compliance deadline: Existing shared housing operators and property owners have until August 26, 2027, to obtain permits and bring their properties into full compliance.
Protection from sudden eviction: If an operator’s permit is suspended or cancelled, authorities can grant occupants an interim stay period to secure alternative accommodation rather than facing immediate eviction.
Approved property/resident categories
The regulation permits shared accommodation across six distinct property types:
Residential apartments
Detached/standalone houses
Residential complexes
Mixed-use buildings
Attached / adjoining houses
Multi-storey buildings
Permitted occupant groups include families, single men, single women, university students, government personnel, and private sector corporate employees. Corporate and student housing provided directly by employers or educational institutions does not require individual tenancy contracts.