Gulf financial sector not fit to manage end-of-service liability money for firms in the region « ArabianMoney

Companies in the Gulf States will have accumulated liabilities of $75 billion in end-of-service payments by 2020, according to a new report from the market research group Insight Discovery.

It notes that if every expatriate left the region tomorrow then employers would have to find $16 billion to cover end-of-service gratuity payments. These payments are the closest thing to a lump-sum final salary pension scheme that exists in the Gulf.

The local financial sector would love to get its hands on this money. But ArabianMoney thinks it would be better left with the employers in most cases.

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