Will Franklin Templeton Be Entering the EOSB Market?

The UAE’s End of Service Benefit (EOSB) saving scheme market continues to mature, and a recent regulatory development involving Franklin Templeton is worth watching closely. According to the CMA’s (the Capital Market Authority of the UAE) website, Franklin Templeton has been approved as a Fund Manager to manage funds in Mainland UAE.

What does Franklin Templeton's licence mean for UAE EOSB?

The significance is that Franklin Templeton is now able to offer clients a broader range of investment services and to combine global capabilities with deep local expertise. In the announcement the firm referred to locally relevant areas including retirement savings and End-of-Service solutions.

What HR and Finance Teams Should Take Away

For HR leaders and Finance managers, the takeaway is straightforward: the EOSB market is continuing to evolve, and that is good news for employers: More licensed administrators (see our recent article on Sukoon), more fund managers, more funds, and more schemes in the market should ultimately mean more choice, more competition, and better-fit solutions for companies and their employees.

The second take-away is that Franklin Templeton is one of the first fund managers (to our knowledge) that has now the full hat-trick of licenses - DIFC, ADGM and now Mainland UAE too. This shows their commitment to the UAE - and it enables Franklin Templeton to offer solutions across all UAE jurisdictions.

Further reading: Daman Investments and Allianz Global Investors sign MoU; Which Fund Manager? Which Fund?; overview of EOSB investment funds; EOSB gratuity FAQ.