Bahrain
Kuwait
Oman
Qatar
Saudi Arabia
UAE
Print
Email
Discuss this article (7 Comments)
Mobile
MOST POPULAR CULTURE & SOCIETY STORIES
ArabianBusiness.com Most Read
-
No stories found.
Tweet
74% of UAE residents do not save regularly
by This email address is being protected from spam bots, you need Javascript enabled to view it on Tuesday, 28 September 2010
Nearly three quarters of UAE residents do not save regularly and 83 percent do not feel their current savings are adequate to secure their future, according to the results of a survey by National Bonds announced on Tuesday.
The survey, which was carried out by market research company YouGov Siraj, found that 74 percent of residents in the UAE still do not save on a regular basis.
Only 26 percent save regularly, compared to 45 percent of those in the UK.
Breaking down the numbers by nationality, 38 percent of western expats saved and were the most frequent savers.
Looking to the future, 83 percent of those responding to the survey confessed that they do not feel that their savings are adequate to secure their future.
Over the next six to twelve months, 48 percent said they expected their income to increase, while nine percent were concerned that it might decrease.
“Our research proves that while people have good intentions, they are falling short in their goal of saving to secure the future of their families. We believe there is nothing more important than helping them in this quest and consequently we are committed to providing the tools and knowledge that allow them to achieve anything from buying their own home through to being able to afford good education for their children,” said Mohammad Qasim Al Ali, CEO of National Bonds Corp.
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
Saving and Expectations Pay Rise
Posted by The Grand Master, The Chamber, The Grand Lodge of Orient on Saturday 2 October 2010 at 14:44 UAE time
As rightfully sandimdrt wrote: saving is a habit and any one should establish in his mind that he has a debt to payback to his/her saving account. Without such mindset no one will ever be able to save.
My personal experience is for the first 8 years in Dubai is I spent all what I earn, had a loan, overdraft, and a huge credit limit on my credit card... savings was just a dream and I lived for my day. After personal restructuring:
1) I canceled my credit card and I have a new one with a credit limit of 50% of my basic salary (allowances are excluded... as these usually get paid in full for what it is intended for).
2) I established 3 debts I have to pay back. First is give on monthly basis an amount of cash to my wife to save in her own way, second a bank account without an ATM card nor cheque book, and third ensuring all coins are taken back from any transaction and saved in my black box at home on daily basis along with all banks notes less than 100 left in my wallet at the end of the day.
Such strategy paid very well when I lost my job after a huge dispute with my employer at the wrong time (early 2008). All of the above helped me to live for 1 year without any income at a very respectful level without a bank calling me asking for loan/credit card repayment and no cheque bounced back. More importantly I paid the full hospital bill for our 3rd child who came to life in the mid of my personal crises...thanks to Allah.
For those who link their saving plans to a future salary increase...don't do. Reasons being is you can wait for ever in such dynamic economy. Any one future plans shouldn't be based on hedging on future event.. it should consider only what resources you have today and assumes that it will continue in the near future.
The downturn in the economy made many employers believe that they are paying is more than enough to cover the cost of living after considering sharp drop in the prices of main basic needs (which is true for housing only but school fees and foods are still high).
Posted by The Grand Master, The Chamber, The Grand Lodge of Orient on Saturday 2 October 2010 at 14:44 UAE time
As rightfully sandimdrt wrote: saving is a habit and any one should establish in his mind that he has a debt to payback to his/her saving account. Without such mindset no one will ever be able to save.
My personal experience is for the first 8 years in Dubai is I spent all what I earn, had a loan, overdraft, and a huge credit limit on my credit card... savings was just a dream and I lived for my day. After personal restructuring:
1) I canceled my credit card and I have a new one with a credit limit of 50% of my basic salary (allowances are excluded... as these usually get paid in full for what it is intended for).
2) I established 3 debts I have to pay back. First is give on monthly basis an amount of cash to my wife to save in her own way, second a bank account without an ATM card nor cheque book, and third ensuring all coins are taken back from any transaction and saved in my black box at home on daily basis along with all banks notes less than 100 left in my wallet at the end of the day.
Such strategy paid very well when I lost my job after a huge dispute with my employer at the wrong time (early 2008). All of the above helped me to live for 1 year without any income at a very respectful level without a bank calling me asking for loan/credit card repayment and no cheque bounced back. More importantly I paid the full hospital bill for our 3rd child who came to life in the mid of my personal crises...thanks to Allah.
For those who link their saving plans to a future salary increase...don't do. Reasons being is you can wait for ever in such dynamic economy. Any one future plans shouldn't be based on hedging on future event.. it should consider only what resources you have today and assumes that it will continue in the near future.
The downturn in the economy made many employers believe that they are paying is more than enough to cover the cost of living after considering sharp drop in the prices of main basic needs (which is true for housing only but school fees and foods are still high).
I'd love to save...
Posted by Oz, Dubai, United Arab Emirates on Thursday 30 September 2010 at 08:23 UAE time
...if only the company paid for my kid's schooling too. And the rent.
Posted by Oz, Dubai, United Arab Emirates on Thursday 30 September 2010 at 08:23 UAE time
...if only the company paid for my kid's schooling too. And the rent.
Savings....
Posted by Punky Brewster, Dubai on Wednesday 29 September 2010 at 10:21 UAE time
The MAIN reason behind the poll showing the WESTERN Expats saving MORE than the ASIAN Expats is the salary package. Think about it - Western Expats get a lot of EXTRA benefits, like housing, schooling, cars, etc... (not all though), and yet, a lot of ASIAN Expats have to do with lower salary, thanks to their background. They also have to deal with salary cuts, non-payment at times, and feeding families back in their home countries. Oh, and lets not forget that a LOT of ASIAN Expats prob have to pay for their visa formalities too, I might add. If this POLL ain't skewed, then what is...??!!
Posted by Punky Brewster, Dubai on Wednesday 29 September 2010 at 10:21 UAE time
The MAIN reason behind the poll showing the WESTERN Expats saving MORE than the ASIAN Expats is the salary package. Think about it - Western Expats get a lot of EXTRA benefits, like housing, schooling, cars, etc... (not all though), and yet, a lot of ASIAN Expats have to do with lower salary, thanks to their background. They also have to deal with salary cuts, non-payment at times, and feeding families back in their home countries. Oh, and lets not forget that a LOT of ASIAN Expats prob have to pay for their visa formalities too, I might add. If this POLL ain't skewed, then what is...??!!
Do not save!
Posted by sandimdrt, dubai, UAE on Wednesday 29 September 2010 at 07:46 UAE time
Savings is a habit, a discipline and has little to do with how much one earns. It’s about resisting the temptation to spend now and pay later, focusing on financial security instead of living for the day and being concerned with what others will say! For some reason expats who come to work in the GCC think they are on a paid vacation. So can we have our cake and eat it too|? Most certainly the golden rule Pay Yourself First! Yes, 10% of your salary cut at source and sent to an account perhaps in your home country basically in a place which is not easily accessible. You still have 90% to spend!
Posted by sandimdrt, dubai, UAE on Wednesday 29 September 2010 at 07:46 UAE time
Savings is a habit, a discipline and has little to do with how much one earns. It’s about resisting the temptation to spend now and pay later, focusing on financial security instead of living for the day and being concerned with what others will say! For some reason expats who come to work in the GCC think they are on a paid vacation. So can we have our cake and eat it too|? Most certainly the golden rule Pay Yourself First! Yes, 10% of your salary cut at source and sent to an account perhaps in your home country basically in a place which is not easily accessible. You still have 90% to spend!
Click here to post a comment
MORE FROM ARABIANBUSINESS.COM
TOP IN MIDDLE EAST CULTURE & SOCIETY
-
No Latest Articles
TOP MIDDLE EAST BUSINESS STORIES
-
No Latest Articles
ALSO IN MIDDLE EAST CULTURE & SOCIETY
SHARE PRICE CHECK
Module default didn't load
Module default didn't load
