Provider Spotlight: First Abu Dhabi Bank (FAB)

This is the second article in our series profiling the licensed providers of the UAE's alternative End of Service Benefit (EOSB) savings scheme — one Fund Manager at a time, in alphabetical order.

FAB was not the first mover in the EOSB market, but its entrance made waves. Having secured regulatory approval for its EOSB proposition early 2025, FAB's arrival was always going to draw attention: as the UAE's largest bank, it brought a formidable balance sheet, an extensive corporate client base, and a brand name few competitors could match

Who is FAB?

First Abu Dhabi Bank was formed in 2017 through the merger of the National Bank of Abu Dhabi and First Gulf Bank, and it's now the UAE's largest bank by assets — north of AED 1.3 trillion as of early 2025. Ownership is dominated by government-related entities: Mubadala Investment Company holds roughly 37.9% and the Abu Dhabi ruling family a further stake, with the remainder in free float on the Abu Dhabi Securities Exchange. That scale and state backing are central to FAB's pitch in this market — few providers can offer the same combination of balance-sheet strength and brand familiarity to UAE employers.

Which EOSB funds does FAB offer?

FAB currently offers two funds: Both of them are capital-protected:

• FAB End of Service Benefit Fund with Capital Protection — a conventional fund investing in local bank deposits, UAE government debt instruments and Central Bank monetary bills.

• FAB Islamic End of Service Benefit Fund with Capital Protection — the Shariah-compliant equivalent, structured on a Wakala (agency) basis and investing in Islamic deposits, Sukuk and Islamic monetary bills. It's overseen by FAB's Internal Shariah Supervision Committee, chaired by Dr Salim Ali Al Ali, which has reviewed and re-approved the fund as recently as July 2026.

FAB has also announced additional risk-based funds — both conventional and Shariah-compliant, spanning growth and balanced risk profiles. However, these additional funds are not launched yet, and no further details on them have been released yet. Please stay tuned, we will of course share any news as soon as we hear them.

One detail worth flagging for anyone comparing providers is the "guarantee" mechnism of FAB's "capital guarantee" funds. Each fund provisions up to 1% of Net Asset Value per year into a dedicated capital reserve, used to offset losses for unit holders redeeming their units. If that reserve isn't enough in a given month, FAB can also waive its own management fee to help cover any shortfall. (Note - In one of our future articles we will compare and contrast the different mechanisms which Fund Managers adopt for their "capital guarnatee" range).

One more structural detail that sets FAB apart from the other providers profiled so far: alongside the employer-linked unit classes, FAB's funds also offer another share class - Class F - which is open to members of the public who want to invest personal money directly, entirely outside of any employment relationship, with a minimum subscription of AED 10,000.

Who manages and administers FAB's EOSB funds?

The funds are managed by First Abu Dhabi Bank PJSC – Asset Management, the bank's dedicated asset management division. Behind it sits a full institutional roster, per the funds' own prospectuses: Apex Fund Services Ltd. (Abu Dhabi) as administrator and unit registrar, Deutsche Bank as custodian, PricewaterhouseCoopers (Abu Dhabi) as auditors, and Norton Rose Fulbright LLP as legal advisors.

On the technology side, FAB uses Aurem, an ADGM-licensed fintech startup, to run its digital platform for employers and employees. A year ago Aurem became the first EOSB technology platform to complete a live data integration with MoHRE, which enables FAB to automate employee onboarding and contribution reporting rather than relying on manual spreadsheet uploads. If data quality is adaequate thid could be a genuine operational and competitive edge as the scheme scales.

Have companies signed up to FAB's EOSB scheme?

Upon launching the scheme, FAB said it had already onboarded its first participating business. No doubt, since February 2025 additional clients have signed up, helped by employer workshops FAB has been running together with MoHRE to drive wider adoption of the new EOSB scheme.

The bottom line

FAB brings scale, government-backed credibility, and a full suite of banking services to the EOSB market. It currently offers two live capital-protected funds with a transparent and competitive fee structure, with more risk-based fund options in the pipeline. Worth noting is the specific "guarantee" mechanism behind its capital-protected funds - a detail worth bearing in mind when comparing guaranteed funds across providers. As for the risk-based funds, stay tuned: we'll share the details as soon as they become public.

For help comparing and evaluating providers for your organisation please get in touch with us.

GratuityAdviser is operated by Lux Actuaries Financial Consulting L.L.C., which holds a Category 5 (Financial Consultations and Introductions) licence from the UAE Capital Markets Authority.