What is the State of the EOSB Offering — Summer 2026 Update

Eighteen months into the UAE’s Alternative End-of-Service Benefits (EOSB) Savings Scheme, the market has clearly moved from “interesting policy idea” to “operational reality”. Employers can now sign up, employees can be enrolled, and contributions can actually flow into licensed investment funds. But how mature is the supply side really? Let’s take stock.

The supply side: from concept to crowded pipeline

When the scheme was first announced, sceptics wondered whether enough credible fund managers would step forward to make the system viable. That question is, in our view, no longer open. According to our Fund Managers tracker, the UAE now has four MOHRE-approved fund managers actively in the market. They are, in alphabetical order:

• Daman Investments PSC

• Lunate (Ghaf Benefits)

• First Abu Dhabi Bank (FAB)

• National Bonds Corporation

In addition, two more providers are in the pipeline and are expected to enter the market soon:

• Sukoon Insurance

• Emirates NBD

That is a meaningful choice: two mega-banks, a sovereign-linked savings specialist, an insurance-led offering, an Abu Dhabi sovereign-anchored fund house, and an independent UAE asset manager. For HR and Finance teams worrying about choice – rest easy, as at summer 2026 a genuine choice now exists — and is broadening further.

The funds themselves: Capital protection is solved, risk-based options are catching up

The more interesting picture emerges when you look at our Funds table listing the funds that are on offer by the various Fund Managers. Here the market is, frankly, two-speed:

Capital-protected funds are the mature segment. Every single licensed provider has launched a capital-guarantee fund — both in conventional and Shariah-compliant variants, as per the applicable law.

These products typically invest in UAE bank deposits (often via Wakala structures for the Islamic versions), Central Bank bills, short-dated UAE government Sukuk or US Treasuries. For employees who simply want to fund the statutory obligation without taking investment risk, the offering is in place.

However, what about employees who wish to invest in risk-based funds? Judging by the more mature EOSB saving schemes in the Dubai International Financial Centre (DIFC), these risk-based funds enjoy great popularity and have generated great results.

Risk-based (“balanced” and “growth”) funds are where the market is still catching up. Here, Ghaf Benefits is clearly out in front: it already has six funds live, including globally diversified balanced and conservative funds in both conventional and Islamic flavours. FAB Asset Management and Daman Investments have publicly announced their own balanced and growth funds — covering moderate, aggressive and conservative risk profiles, both conventional and Shariah — but at the time of writing these are announced rather than launched.

The practical implication is this: if your workforce wants real investment growth potential (and most younger employees will want this!), today you are effectively choosing between Ghaf Benefits’ multi-fund range or a capital-protected solution only.

That said, we expect that within the next few months the situation should change materially as the FAB and Daman risk-based funds come to market — and as new entrants such as Emirates NBD and Sukoon unveil their own EOSB propositions.

What else is still missing?

An honest state-of-the-union has to acknowledge some additinal gaps over and above the choice of funds mentioned already. For example:

• Limited track record. None of the launched funds has a multi-year performance history yet. Boards and trustees evaluating providers therefore have to rely on portfolio construction, fees and governance — not historical returns. We look forward to seeing the Fund Managers disclosing the actual performance of their funds, so that the public is able to make an informed choice.

• Fee transparency varies. Headline fees are published, but the total cost of ownership is not always obvious.

• Employee & HR admin experience is still largely unknown. Digital apps, statements, education content, trouble-shooting and on-boarding journeys vary between providers — and these will matter enormously when employees and HR admin departments need servicing.

Bottom Line: How mature is the supply side overall?

Our summary view: the EOSB market in summer 2026 is functional, growing, but not yet fully developed. There is enough choice to run a credible procurement process, enough capital-protected capacity to absorb sizeable employer enrolments tomorrow, and a healthy pipeline of risk-based funds and new fund managers due over the next 6–12 months. We are clearly past the “is this real?” phase and well into the “who is best for us?” phase.

What it means for HR managers and business leaders

For HR and Finance leadership, three messages stand out.

• First, the offering is growing and still developing. If you went to market a year ago and concluded “there isn’t enough choice yet”, that conclusion needs now revisiting. The provider landscape in 2026 already supports a rigorous selection process, and competitive pressure between providers is starting to drive better fees, better technology and better employee journeys.

• Second, EOSB savings schemes are coming — and will sooner or later become compulsory. The regulatory direction of travel is unambiguous: the UAE is moving towards a funded, employee-protective EOSB model in line with international best practice. Organisations that build their understanding, governance and provider relationships now will be far better placed when mandatory rules eventually arrive.

• Third, there are real pros and cons to moving early. Early movers gain cash-flow predictability, contain the growth of an unfunded liability, and send a strong signal to employees and candidates in a competitive talent market. But waiting can also be rational — for example, if you want to see the risk-based fund range mature, observe peer-group practice, or benefit from the wider provider choice expected later in 2026. Our step-by-step guide to switching walks through this decision in detail, and our companion piece on how to present EOSB reform to your board and leadership team shows how to frame the choice strategically rather than as an admin exercise.

The strongest recommendation we can offer in mid-2026 is the one we have made consistently: don’t rush, but don’t drift either. Run a structured evaluation now — ask Finance to model the cash flows with our CFO Cash Flow Forecast tool, compare scenarios with our Traditional vs. Alternative EOSB calculator, and pressure-test provider choice with professional licensed advice.

The supply side is ready enough for serious decisions, and the strategic case for engaging with the reform — rather than waiting it out — gets stronger every quarter.