Saving money for a rainy day has become a thing of the past for nearly half of United Arab Emirates’ residents, research has found.
Insufficient salaries and high-income costs mean 53 per cent of employees do not set aside funds from their monthly wage for retirement or emergencies, while more than 30 per cent do not save even a single dirham.
Despite the UAE’s attraction to expats as a tax-free haven, many people say they find themselves financially insecure due to loans and credit card debt alongside a lack of income.
Meanwhile, more than 13 per cent of research respondents admitted they believed life is too short to save, according to research by compareit4me.com.
Compareit4me editor Sonja Stephen said: “Along with good credit card management, making payments in full and on time, both factors which are essential to avoid debt, it’s smart to focus on a savings plan.
“Individuals should tailor a realistic savings plan to suit them and should take positive steps to achieve their goal. Increasing emergency savings, signing up for a good pensions plan and even investing are all key areas that should never be overlooked.”
She added: “It hasn’t always been the case, but savers in the UAE can now earn higher returns on their money. The majority of the UAE banks are now offering attractive savings and fixed deposit accounts too.”