Findings of an ongoing financial health survey indicate that 24% of UAE nationals save for retirement, 36% save for a major purchase, and 34% save to buy a house. However, only 7% save for their children’s education, according to National Bonds Corporation.
As for other nationalities in the UAE, 35% save for retirement, 37% save to buy a house and 18% save for a major purchase. Only 10% save for education.
Additional findings from the survey show that 56% of UAE nationals said they make monthly payments towards personal loans, 32% settle credit card debts, while 12% pay off mortgages. As for other nationalities in the UAE, the survey found 50% of the respondents are paying off personal loans, while 38% make credit card payments, and 13% settle mortgages.
The survey results also indicate that 20% of UAE nationals among the respondents usually save monthly, as opposed to only 11% of single UAE nationals. In addition, 52% of UAE women from all nationalities don’t have an emergency fund, while 6% of female UAE nationals do. Additionally, 17% of UAE national respondents and 14% of respondents from all nationalities said they have takaful coverage.
Mr Mohammed Qasim Al Ali, CEO of National Bonds, said: “Five months since our last financial health check, we are observing a major shift in our savers’ financial behaviour. We are happy to note that saving for retirement and homes is gaining precedence among customers of all nationalities. However, debts due to personal loans and credit cards remain the biggest challenge.”
The financial health check survey was launched in February 2014 as an online tool to help customers assess their financial status and take corrective action towards achieving a more resilient financial future. To date, the survey has received responses from more than 1,000 customers who fall within the 26-40 age group. The UAE has a total population estimated at around 10 million, of whom 10% are nationals.