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Family first for Indians
NRIs choose advice from those closest to them over professionals.
May 27, 2013 11:21 by kippreport
Non-resident Indians (NRIs) living in the United Arab Emirates save approximately 70 per cent of their disposable income; they would rather turn to family members than professionals when seeking financial advice, have an arguably strong home bias towards Indian companies (and their offerings), and consider their children’s education to be the most important priority – at least for 91 per cent.
In the first report of its kind in the region, Standard Life NRI Wealth Study also revealed – through a sample of 300 UAE-based NRIs with a disposable income of Dh15,000 a month – that only 21 per cent relied on NRI financial advisers, while 18 per cent trusted their bank, and a mere 10 per cent turned to non-NRI financial advisers.
In a nutshell, trust is a key factor.
When it comes to financial products, 64 per cent of respondents say they prefer offerings from Indian companies and that – for 91 per cent of them – their children’s schooling is the most significant priority in their lives. Their four top expenses that follow are; rent, miscellaneous household bills, holidays and health-related expenses.
“It is really interesting to see that many NRIs trust family members instead of professionals when seeking expert advice for financial planning,” says Chris Divito, CEO, Standard Life International Limited.
“Our survey found that, on average, NRIs allocate some 70 per cent of their disposable income towards savings and investments, so it is clear they have a strong savings ethic. If this pro-savings approach were to be supplemented with expert advice, then they could reap the benefits of professional financial planning for a more secure future.”
*The study was based on a sample of approximately 300 NRIs who were UAE residents, with a disposable income of AED15,000 and above. Of the respondents, 34 per cent were between 25 and 35 years old, while 54 per cent of them were between 36 and 45 years old; 12 per cent were between 45 and 60 years old. Married respondents comprised 96 per cent, while single respondents made up four per cent. Eighty three per cent of respondents were male, 17 per cent female. A total of 59 per cent of respondents have been UAE residents for more than 10 years, while 34 per cent have been in the UAE between five and 10 years, and six per cent were in the country between three to five years.