Around 45 percent of people living in Saudi Arabia do not save any money out of their monthly income, with 60 percent blaming their low income for their failure to save, according to a new survey by online finance group Souqalmal and Jeddah-based wealth management firm SEDCO Holdings.
The research found that 83 percent of respondents have no long term investment plans, 17 percent save less than 5 percent and 38 percent save more than 6 percent, reported Arab News.
The data comes in line with the Ministry of Housing’s request for Saudis to save for a deposit on their future home.
Some ways in which residents can save include properly managing finances, reducing needless expenses and opting for appropriate saving and investment opportunities, according to SEDCO executive Amr Banaja.
Official statistics since 2014 reveal the average levels of income have risen 13 percent in the private sector as opposed to 6 percent in the public sector, the survey said.
Moreover, inflation rose 7.6 percent between 2014 and 2016. While it fell to near zero last year, it increases again at the start of 2018 due to the introduction of value added tax (VAT), with consumer prices rising 2.7 percent in February, marginally down from 3 percent in January.
“Saving and investment should go hand in hand. Start with a monthly budget and figure out what your basic necessities are that you can save every month,” said Ambareen Musa, founder and CEO of Souqamal.
The survey included 2,000 Saudi and expat respondents living in the kingdom.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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