Here’s why 85% of the UAE consumers are not saving
Most of the people who reside in Dubai are not able to save much of their hard earned money since the past year. According to the studies shown by the new survey findings, most of them are not setting aside funds for retirement or for the future of their families.
The survey findings that were conducted by National Bonds on Tuesday had shown the responses of more than 1,500 participants that they had surveyed. It concluded that about 85 percent of the people residing in the UAE had not been setting any funds for their future. The survey was conducted in the year of 2017.
The good news, however, is that 41 percent of the participants had already resolved this issue by stating that they are on their savings journey from 2018 and another 57% also plans to increase the amount of their savings that they have set aside for their future.
There are one too many reasons that most of the participants had given during the survey as to why they were unable to save their hard earned income for their future. But amongst all of them, the chief reason being that they do not know how to effectively manage their expenses and plan their finances.
Then there are those who are struggling to play off their credit card debts. The struggle is due to because they have borrowed more than they can afford to replay back. Consumption and socializing are the top reasons for draining the money.
The CEO of National Bonds Corporation, Mohammed Qaim Al-Ali, mentions that the people do not have the “tools or know-how” to save their money and some people just don’t put their time to invest in knowing these financial vehicles.
Al Ahli says that, “While it is not surprising to see that residents in the UAE are not saving as much as they believe they should, it is interesting to see the disconnect between the intent to save and the numbers of people saving year-on-year. Education, however contrived, remains integral to increasing savings across the nation. The UAE has the largest portion of regular savers in the GCC and I am confident that we will continue to lead the way in this area if we keep striving to raise awareness of the importance of saving.”
He also stated that, “If people realize the key role which savings play in securing a happy future, everything else would fall in its place. Just look at the statistics, nearly half of residents aim to save more in 2018 – the appetite is there, we just need to tap into it.”
The National Bonds survey also goes surveyed respondents from Saudi Arabia, Kuwait, Bahrain and Oman and the majority of those who were surveyed were of the ages between 30 and 44 years old.