DEWS report 2025: Lessons learnt for the Mainland UAE

Whilst the alternative End of Service Benefit (EOSB) saving scheme is fairly new in the UAE mainland, a similar scheme exists already in the UAE - and it has been running already for more than five years: The DIFC Employee Workplace Saving scheme, or DEWS in short.

We have covered DEWS already in an earlier article. Today, as the DEWS annual report for 2025 has been recently released, we drill down what lessons can be learnt for UAE companies that are looking to adopt the new alternative End of Service Benefit (EOSB) saving scheme

So, what are the key take-aways, that matter for HR Managers, CFOs and CEOs?

Funded savings can create real employee wealth

The biggest headline from the 2025 report is the scale of asset growth and investment gain. DEWS ended 2025 with net assets of about US$1.178 billion, up from US$827.4 million a year earlier. More importantly, the scheme recorded roughly US$113.7 million in fair-value investment gains in 2025.

That is a powerful reminder that once end-of-service benefits are funded and invested, employees are no longer limited to receiving a static employer promise. They can participate in market growth. For CEOs and HR leaders, that changes the value proposition of employee benefits. A workplace savings scheme is not just a compliance mechanism; it can become a genuine wealth-building platform for staff.

This is a long-term savings endeavour, not a quick trading play

The DEWS experience also shows why long-term thinking matters. Strong 2025 returns did not appear in isolation; they followed several years of steady asset accumulation. That is consistent with the broader logic of workplace savings: short-term market swings matter less than disciplined, long-term investing. For mainland employers, one practical lesson is that employee communication matters almost as much as product design. If staff treat a savings scheme like a trading account, disappointment is likely. If they understand it as a long-term benefit linked to career stage, retirement horizon, savings goals and risk appetite, the scheme is far more likely to succeed.

The implication of this take-away is clear: HR Managers and business leaders must invest in theiremployees’ financial literacy, so that they can make the best out of the new EOSB saving scheme.

Choosing the right funds is critical — and wide fund choice matters

One of the clearest takeaways from the 2025 report is that fund selection has a major impact on outcomes. In 2025, the Mercer USD Cash Fund returned 4.4%, while the Mercer Multi Asset High Growth Fund returned 18.3%. The HSBC Islamic Global Equity Index Fund returned 21.9%, while the Franklin Global Sukuk Fund returned 8.6%. These are big and material differences. Even within the Mercer range, the spread between lower-risk and higher-risk options was substantial. In other words, two employees receiving the same employer contributions could end up with very different savings outcomes depending on fund choice. Mainland employers should therefore not settle for a one-size-fits-all design. A credible scheme should offer a broad range of options across cash, bonds, diversified growth, equities and Sharia-compliant strategies so employees can make choices that suit their individual circumstances.

Workplace savings plans are not free

The 2025 DEWS report is equally useful because it makes charges visible. The scheme’s fee structure remained 1.23%of assets under management in both 2025 and 2024, split between Equiom (the trustee), Mercer (investment adviser) and Zurich Workplace Solutions (the scheme administrator). In absolute dollar terms, however, charges rose as assets grew. Management expenses increased from about US$8.27 million in 2024 to about US$10.82 million in 2025.

That does not mean the scheme became poor value; it simply underlines that governance, administration, investment oversight and member servicing all have a cost. For finance managers on the mainland, the lesson is straightforward: do not ask only whether a scheme costs money. Ask whether the fee structure is transparent, what fees are applied, paid by whom; compare charges to evaluate if they are competitive; and satisfy yourself that the fees are matched by real value in governance, operations and member outcomes. When in doubt – ask a professional and CMA-licensed adviser.

Conclusion

The broader message from the DEWS annual report is that workplace savings reform definitely works, and delivers great outcomes for employees. However, that comes with several caveats:

• Plan comparison & scheme choice is a key decision that every UAE management will need to take. Taking professional advice is recommended.

• Employees can only truly benefit from the new system when they know the basics of investing. Employees must be able to master concepts such as market volatility, expected return, and risk. This calls for companies having to invest in Financial Literacy. Please check the GratuityAdviser’s eLearning centre for further information.

We will continue to keeping an eye on DEWS (and the other DIFC saving scheme called “Go-Saver” by Sukoon), in order to share “lessons learnt” for the UAE Mainland. If you haven't done so yet, please sign up for FREE to GratuityAdviser to stay informed about all the latest news and trends concerning UAE's EOSB transformation.