Bankers and Wealth Managers in UAE have revealed a shocking report about the Savings of UAE residents. The report says that nearly 25 percent of the residents don’t even save a single dirham from their monthly salaries.
“People should start saving at a very young age,” said Dr. Tariq bin Hendi, EVP and head of wealth products and advisory at retail banking and wealth management at Emirates NBD. “Saving money is not enough and residents need to think about how they manage their money. If you save regularly, then you can have a relaxed financial life 20-30 years down the line,” bin Hendi said.
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He said people should make a conscious choice that they want to save now and assured help from financial institutions. He added that 38 % of adults in UAE are financially illiterate and 68 % have no formal savings while 25 % don’t even save a single dirham from their monthly wages. A whopping 94 percent is reported to be living under financial stress.
Ambareen Musa, founder and CEO of souqalmal.com, said people are now living beyond their capacity as getting credit was so easy a few years back. He felt that people are not coming to UAE to live for two years and then leave but have long-term plans.
“But there has been a massive change in the last 12 months and people are more financially literate now. People have realised that the cost of living is going up so they have started saving now. Also, the UAE is no longer the place where people come to live for two years and then leave. Now people are building families, homes and lives here on a longer-term basis,” Musa said.
Hussain Al Balooshi program stressed the importance of financial education. He said 70 percent of the residents are struggling with loans and credit cards.
“It is necessary to add financial education in the curriculum for young people. We still think that the youth needs more information about financial literacy because we found that 70 percent of them, aged between 18 to 35, are struggling with their loans and credit cards,” Al Balooshi added.
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