UAE residents keen on saving more in 2016

Dubai - More people realising the importance of setting aside money for a sound future

More than 50 per cent of Western expatriates are keen to increase their savings in 2016 compared to 68 per cent Arab expats and 60 per cent Emiratis, the National Bonds Savings Index released on Saturday revealed.
The Dubai-based leading Shariah-compliant savings and investments company said a majority of people surveyed in the UAE believe that their savings are not adequate for their future, while 34 per cent of savers claim to have saved less than planned.
National Bonds said the survey findings indicate that both nationals and expatriates are becoming increasingly aware of the importance of saving for a sound future.
The growing desire for savings among UAE residents was also evident through to a survey released early this year by the Dubai-based Guardian Wealth Management. According to it, a majority of expats based in the Gulf are not saving enough for a comfortable retirement, despite having high incomes.
More than three-quarters of the 3,000 people surveyed said they were saving less than 20 per cent of their monthly income, while a fifth said they were saving just less than 10 per cent. The income of those surveyed ranged from Dh40,000 to Dh60,000 per month.
Another survey carried out by finance comparison site compareit4me.com revealed that 53 per cent of respondents said they do not earn enough money to save. The research further indicated that while less than half of UAE residents set aside funds from their monthly wage for retirement or emergencies, more than 30 per cent do not save a single dirham, with over 13 per cent admitting they believe life was too short to save.
In a statement, National Bonds said its strategy to encourage regular savings in the country had succeeded as evidenced by a rise in the number of regular savers with its saving scheme as well as a greater demand to top up existing accounts.
Between March 15 and May 19, some 40,000 account holders with National Bonds increased their savings balance to Dh3,000 and above.
Indian expatriates represent the majority of National Bonds' regular saving customers, with more than 10,200 customers increasing their savings in this period, followed by 6,300 UAE national customers.
Mohammed Qasim Al Ali, CEO of National Bonds, said the results underscored that the company's strategic approach in inculcating a regular savings habit among the UAE community is proving effective.
"As a customer-centric company, our goal is to benefit our bond-holders through encouraging them to keep their savings accounts active and enroll for our myPlan programme. Besides inspiring customers to save on a regular basis, myPlan gives them more opportunities to grow their savings by winning specially allocated prizes in monthly and quarterly draws. Our proactive efforts help customers develop a regular savings habit to achieve financial independence," said Al Ali.
"UAE nationals as well as expats from different nationalities across the spectrum are today increasingly aware of the importance of saving and consequently, are more responsible with regard to achieving their financial wellbeing. The potential to save ranked high in 2015 on the National Bonds Savings Index - with savings gaining greater significance in people's life across nationalities," Al Ali added.
"I believe the gap between the will to save and the actual saving behaviour has definitely narrowed. We observed many customers in first half 2016 topping up their savings."
Noting that a majority of people surveyed believe that their savings are not adequate for their future, while 34 per cent of savers claim to have saved less than planned, Al Ali said such dissatisfaction is a driving force to increase savings on a regular basis.
"In the last three months, close to 3,000 National Bonds customers have joined the my Plan regular savings programme - the majority of these customers are Asian with men dominating women as regular savers."
- issacjohn@khaleejtimes.com