UAE residents fearful over lack of savings

National Bonds report shows 86 percent of local residents are worried about not saving enough
UAE residents fearful over lack of savings
Abu Dhabi residents indicated that they were paying increased amounts for eating out and  luxury retail (Getty Images - for illustrative purposes only)
By Ed Attwood
Thu 30 Jun 2011 09:55 AM

Rising costs and efforts to pay off loans are among the reasons why almost nine out of every ten residents are worried about not saving enough, according to a new report.

A survey carried out by National Bonds Corporation showed that 46 percent of the population saved less than they had originally planned.

Nearly three quarters of respondents (71 percent), admitted that they do not save regularly, with just under a tenth saying they did not save at all. Of the latter figure, most blamed higher expenses and loans for their inability to save.

Breaking the data down by nationality, the survey found that UAE nationals and Western expats are saving less than in 2010, while Asian and Arab expats are saving more.

From those who do save, 64 percent say the sum is less than a fifth of their income. Among UAE nationals and Arab expats, 40 percent say they save less than a tenth of their income. National Bonds said that overall trends show that Westerners and Asians save larger amounts than others.

Respondents to the survey also revealed that they are spending more money than last year on various areas. Four in six said they were paying more for transportation – reflecting the rise in petrol prices in the UAE – while 58 percent indicated that groceries were more expensive.

Showing the difference between the various emirates in the UAE, Sharjah residents claimed they were spending more on necessities such as groceries, household items and education. However, Abu Dhabi residents indicated that they were paying increased amounts for eating out and  luxury retail.

The research was carried out by YouGov Siraj using a sample of 501 respondents.

National Bonds said that the survey was helping it plan a nationwide ‘financial education roadshow’, which aims to help various sectors of the UAE community manage its spending and plan savings.

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