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UAE employees want companies to offer savings, investment schemes: Report

Workplace and retirement savings is one of the bigger gaps in the Emirates with workers saying they don't currently receive this benefit

An increasing number of employees in the UAE want their companies to offer savings and investment schemes as part of their benefit package. A recent report revealed a growing desire for employer support in financial planning, alongside an appetite for empowerment through financial literacy.

Zubair Siddiqi, head of marketing management, Zurich Middle East, emphasised that workplace financial empowerment is now seen as a requirement. "There's a growing need for workplace savings and investment opportunities, starting from the UAE and moving across the region. The message is very clear, financial empowerment and financial literacy isn't just a perk anymore. It's actually a necessity."

This Future of Work 2024 report, commissioned by Zuirch International Life, surveyed 2,000 employees and 2,000 employers across industries in the UAE, KSA, Qatar, and Bahrain and one of the key findings indicated that majority of employees wanted workplace savings plans to be included in their benefits.

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The financial advisor and director of Barjeel Geogit Securities, KV Shamsuddeen, said that the finding did not surprise him. "I have been in the UAE for 51 years helping lower-income expats save and invest for the future, and it will be surprising for many how few people are financially literate,” he said. “Many either send their money back home to their family or spend irresponsibly. However, the younger generation is focused on saving and investing, demanding that their companies support them in this growth journey.”

"In providing more informed financial literacy, employers can empower their teams to make informed decisions about their money," said Uneesa Zaman, founder of financial literacy platform Ayda Invest. "This leads to reduced financial stress, which, in turn, can help to increase performance, engagement and retention rates. Debt is a particularly prevalent issue in the UAE, with the average household being in Dh30,000-Dh50,000 credit card debt. This is an issue rarely spoken about, and in providing an environment to gain financially literacy, employers can act as vessels to both micro and macro prosperity in the UAE."

Workplace savings plan

The report pointed out that workplace and retirement savings is one of the bigger gaps in the UAE with 31 per cent of employees saying they don't currently receive this benefit but would like to.

According to Ashika Tailor, head of business development for employee benefits at Zurich Middle East, workplace savings plans are a great tool for helping employees improve their financial security.

“It is the norm for many employees to not have much exposure to financial literacy,” she said. “So, it is very important that companies take it upon themselves to offer that kind of support. It can be through different means. The workplace savings plan is becoming increasingly popular in the region, being driven from some of the regulatory reforms that we're seeing in the UAE."

Last year the UAE introduced an optional end-of-service scheme which allowed employers to invest the money set aside for gratuity in multiple savings schemes supervised by the Securities and Commodities Authority in coordination with the Ministry of Human Resources and Emiratisation .

Ashika said companies could also contribute by ensuring financial literacy for its workers. "It is closely linked to financial well-being assistance, so providing access to financial education in some way is a great move," she said. “There are some quite innovative ways that you can do that now through digital platforms, and it doesn't necessarily have to be one-on-one advice."

The report also indicated that Emiratis seek more guidance on financial planning in addition to savings and investment opportunities compared to others in the market.

Saving hack

According to Shamsuddeen, it was important, especially for expats, to start saving as soon as possible. “A lot of people tell me they earn less and cannot afford to save. I tell those living here alone to save at least 30 per cent of their salaries and those with families to set aside at least 20 per cent of their income.”

He said he often shared a hack with his clients to cut unnecessary spending. “I always ask them to write down their daily expenses in three columns of essential, optional, wasted expenses,” he said. “Once they start doing it for a month, their subconscious mind starts to do it even before spending. It is important for individuals to remember that savings is not what is left over after spending. It is what should be the first thing that is set aside when they get their salaries.”

Uneesa said that the financial literacy programmes can benefit several people, especially women. "For women in the UAE specifically, financial literacy holds even more significance as they are often an overlooked market when it comes to wealth-building," she said. "However, with increasing participation in education, the workforce and in business, more women need targeted financial literacy to help bridge the gap in access and provide financial education that aligns with their values."

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