UAE’s low-income employees save more
Country’s ‘increasingly favourable financial climate’ a key factor, reveals study.
December 17, 2013 12:56 by kippreport
Low-income employees in the UAE were able to save between ten per cent to 20 per cent of their monthly salaries in 2013, with 31 per cent either saving regularly on a monthly basis or every three months, according to an annual study by National Bonds Corporation.
According to the 2013 Savings Index for the UAE and GCC – which collected responses from more than 200 employees earning less than AED3,500 per month – there is an evident boost in the prospects for saving amid an increasingly favourable financial climate in the UAE.
The survey adds that employees in the low-income category were able to save two per cent more than all other groups in the UAE.
The majority (86 per cent) of UAE residents claim that their current savings are insufficient, while a mere two per cent say they’ve saved “more than enough” for the future.
According to residents, this year did not make the ability to save any easier, with 14 per cent describing 2013 as “not a good year” to save. Only six per cent said it was a good year to save, while the majority (38 per cent) remained neutral.
On the bright side, 93 per cent of the surveyed residents are confident that their income will either remain stable or increase.
The study, which took three financial stability, potential for savings and the existence of an enabling savings environment into account, indicated a decrease of three per cent from 2012, reaching 48 per cent in the volume of savings among UAE residents.
When it came to the desire to opt for sustainable savings programmes, there was a slight increase of one per cent from last year, reaching 74 per cent in 2013. The level of satisfaction in terms of financial stability remained unchanged from 2012, with positive responses totalling 61 per cent.
The study also reveals that four per cent of low-income participants save more than they had planned, while 49 per cent are committed to their saving plans and 48 per cent indicate no commitment.
Eighty nine per cent of the respondents in the GCC region expect financial stability throughout the next six months.
The majority of respondents agreed that a significant portion of their expenses was disbursed on food and rent. Additionally, the study indicates that 20 per cent of GCC respondents saved 11 per cent, which is 20 per cent of their overall monthly incomes, while four per cent saved 51 per cent, which is 60 per cent of their monthly salaries.