Sukoon Secures Fund Administration License to Offer EOSB Saving Schemes

Sukoon Insurance PJSC (“Sukoon”) has announced that it has officially received its mainland fund administrator license from the Capital Market Authority (CMA), establishing Sukoon Workplace Savings Solutions Fund Administrator LLC (SWSSFA) in the United Arab Emirates (UAE).

Hammad Khan, Interim CEO at Sukoon Insurance, commented on the occasion, "We are incredibly excited that this dedicated entity has received the UAE mainland license from CMA, which marks a pivotal milestone for Sukoon and a key step forward in our long-term diversification strategy.”

What it means

First of all, it means that Sukoon will soon be able to offer and administer EOSB saving schemes. But what is actually meant by 'administration'? It means Sukoon will run the IT systems that power the EOSB schemes; answer queries from employees regarding their accounts; assist comanies in introducing the scheme; process all incoming employer contributions on a monthly basis; and generally provide all necessary and relevant services to employers and employees.

Secondly, it does not mean that Sukoon will actually manage EOSB funds. That is subject to another CMA license - Fund Management. Most likely, Sukoon will partner with one or several licensed Fund Managers to put together an EOSB offering. This has not been announced yet, so stay tuned.

Thirdly, it is to note that Sukoon is no stranger when it comes to EOSB saving plans. Sukoon already today operates one of the two approved EOSB schemes in the Dubai International Financial Centre (DIFC). Their scheme - called GO-SAVER - has been operational since last year, and offers DIFC firms an alternative to the DEWS scheme which is in place since 2020.

Why this matters to HR managers and Business Leaders

The key take-away for HR Managers and Busienss Leaders is the following: The EOSB market is evolving fast. We can expect to see the Sukoon's EOSB offering soon, bringing the total number of providers to five (please click here for an overview of all licensed providers). Similarly, there are rumours that other new providers may also soon be entering.

Please stay tuned for further updates - we at GratuityAdviser will bring you all news from the evolving EOSB market as and when they happen.