Team shortlist17 Jan 2016 AT 03:31 PM

Do you earn enough to save money in the UAE?

53% of residents don't save, says survey
Team shortlist17 Jan 2016 AT 03:31 PM
Do you earn enough to save money in the UAE?
© 2015 Getty Images

Finance comparison site compareit4me, who are based in the Middle East, carried out a survey on the spending and saving habits of UAE residents. They found that 53 percent of people who responded to the survey don’t think that they earn enough money to allocate any funds to a savings account.

Breaking down this figure further, over half of respondents don’t set aside money for retirement or emergencies, while 30 percent don’t save any money whatsoever. Of these people, 13 percent said that life’s too short to save.

“It’s easy to put off saving especially in your younger years, but before you know it, another year has passed and you still haven’t put your saving plan into action. There are a wide range of investment opportunities available to expats, said Sonja Stephen, Editor at compareit4me group. “For example, offshore banking is a great way to keep track of your finances, while enjoying the security and comfort of having your money in a highly regulated environment.”

The findings show that while some people in the UAE don’t earn enough money to save, others simply don’t see savings as a priority, and would rather spend every dirham they earn. But Sonja points out that savings accounts in the UAE are worth considering. “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.”

Perhaps unsurprisingly, most financial worries were attributed to not earning enough money. Credit card debt and loans were high up on the list of concerns.

Sonja adds: “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.”

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