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Sat 27 Apr 2013 05:34 PM

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Saudis need more education on savings - survey

About 60% of Saudi nationals fail to save less than a tenth of their income, says poll

Saudis need more education on savings - survey

Sixty percent of Saudi nationals save less than 10 percent of their income, a survey has revealed.

Of them, two-thirds claim they do not save anything, while one-fifth said they do not know how to save.

The survey of 1,000 Saudi residents by souqalmal.com also found Asian expats were the best savers in the kingdom, with 40 percent claiming they put away at least 30 percent of their earnings, compared to 37 percent of Western expats.

On the contrary, 42 percent of Arab expats in Saudi Arabia did not save anything and 12 percent said they did not know how to save.

Souqalmal.com CEO Ambareen Musa said there needed to be greater education about savings plans.

“The biggest issue I think is the education of how to save, tools to use to help budget and realisation that we all need to be prepared for the future,” she said.

“Saudi Arabia has one of the youngest population in the world and in the range of 25-30 [years], saving is usually not at the top of mind.

“While enjoying a good quality of life now is important, saving adequate amounts for the future is even more so and that is not only for a rainy day or for our retirement but to be able to more easily invest in a house for the family.”

However, Saudi residents appeared to acknowledge their poor savings records, with only 15 percent saying they saved enough, while more than half admitted they saved less than what they did three years ago. 

About 45 percent expressed a willingness to save more.

The survey also revealed Saudis’ lack of understand of investment choices, with 55 percent of those who saved using a basic bank account to store their money.

Property was the second most common form of saving, with 10 percent of respondents investing that way, compared to 32 percent of savers in the UAE.

Musa said Islamic beliefs often played a role in Saudis’ investment choices.

“Islamic products are an extremely important consideration for many in Saudi Arabia, yet people are potentially not aware enough of their options,” she said.

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jonjon 7 years ago

this is not a problem in ksa but in the whole gcc. savings by nationals is really low at most. i think theses the believe that whatever happens, financially, the government will bail them out one way or the other.