Only 6% of UAE, Saudi Workers Expect Workplace Retirement Savings as 90% Want a Plan
Updated
Updated · Arabian Gulf Business Insight · Jun 17
Only 6% of UAE, Saudi Workers Expect Workplace Retirement Savings as 90% Want a Plan
2 articles · Updated · Arabian Gulf Business Insight · Jun 17
Summary
BlackRock’s survey of 1,000 workers found only 6% of employees in the UAE and Saudi Arabia expect to rely on a workplace savings scheme in retirement, exposing a sharp access gap.
Nearly 90% said they would welcome such a plan, but most private-sector employers still do not offer one, leaving workers dependent on end-of-service benefits that are paid as lump sums and earn no investment returns.
Expatriates face the biggest shortfall: they dominate the UAE private sector, lack access to public pensions and fewer than half say they feel prepared for retirement.
Reforms already allow voluntary funded schemes, and the DIFC has made participation mandatory for eligible employees, yet uptake elsewhere remains limited because most employers are not required to join.
BlackRock said shifting unfunded EOSB liabilities into invested retirement pools could deepen Gulf capital markets, citing Australia’s A$4 trillion superannuation system as a model.
With UAE pension reform shifting risk from firms to staff, are employees prepared for potential market downturns?
Can the UAE’s plan to channel billions into local markets truly replicate Australia’s A$4 trillion pension success story?
As UK pension costs soar, should British expats in the UAE abandon their state pension for local investment schemes?
From Gratuity to Growth: The $1 Billion Shift in Retirement Savings in UAE & Saudi Arabia
Overview
As of 2026, the UAE and Saudi Arabia are at a turning point in their economic transformation, highlighting an urgent need to strengthen retirement systems. Robust retirement frameworks not only improve individual financial security but also help mobilize domestic savings. These savings, in turn, support deeper capital markets and foster long-term economic resilience. However, there is a significant gap between employees’ growing demand for reliable workplace retirement plans and their limited availability, especially given the challenges of the traditional end-of-service gratuity model. Addressing these issues is crucial for both personal and national financial stability.