Dubai: National Bonds said on Tuesday its survey indicated a significant increase in potential for saving, and an overall positive outlook on financial stability of the UAE.
The survey, conducted by Sondos Market Research for the UAE-based company issuing the Sharia-compliant investment programme, revealed that 85 per cent of the respondents in the UAE foresee a stable financial status in 2017, and 64 per cent plan to save more.
More than 60 per cent of UAE nationals, 65 per cent of Arab expatriates, 65 per cent of Asian expatriates and 50 per cent of western expatriates expressed an intent to increase their savings in the next six months, the survey found.
“The statistics of our 2016 survey show a positive uptick in awareness [on] the importance of saving and we found that 68 per cent of the respondents plan to start saving, compared to 31 per cent in 2015. The entire UAE population, including nationals and expats, are more financially aware, with the increase in savings potential reaching 19 per cent,” Mohammad Qasim Al Ali, CEO of National Bonds, said in a statement.
Mounting loans
“Mounting loans remain one of the most likely factors to impact savings plans. Settling these debts is integral to achieving financial health and happiness for individuals,” he added.
The results of the National Bonds Savings Index 2016 for the country indicated that 59 per cent of respondents have loans, of which 17 per cent even have two loans. Personal loans remain on top of the list with 67 per cent and only 22 per cent have a mortgage. UAE nationals represent the majority of car loan holders at 48 per cent, while 50 per cent of westerners have a mortgage.
“Notably, 65 per cent pay any debt in full each month, which is an encouraging indication of responsible financial behaviour that ensures financial stability for individuals and families and reflects positively on the nation’s economy,” the survey conducted by National Bonds revealed.
