Sixty-seven percent of Emiratis and 72 percent of expats surveyed in new research by National Bonds Corporation say that they are planning to become debt free by the end of this year.
The research also showed that nearly three quarters (73 percent) of Emiratis surveyed said they did not a have Sharia-compliant (takaful) life insurance policy in place. Eighty-nine percent said they had no policy against disabilities.
For expats, 83 percent said they had no takaful coverage, with 17 percent said they had no life insurance coverage at all.
“The majority of the social strata, regardless of nationality, is unable to grasp the significance of insurance and its impact on an individual’s and family’s stability and security,” said Mohammed Bitar, National Bonds’ chief commercial officer, in a press statement.
“They also do not effectively understand the difference between traditional insurance and Takaful, let alone comprehend the actual benefits of Takaful, which focuses on social cohesion and involves the collective sharing of any burdens.”
In August, research from same organisation showed that more than half of the UAE’s Western expats want to increase their savings in 2016, compared with 68 percent of Arab expats and 60 percent of Emiratis.
About 34 per cent surveyed claimed to have saved less than they planned.
The findings indicated that both nationals and expats were becoming increasingly aware of the importance of saving for a sound future, National Bonds said.For all the latest banking and finance 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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