Dubai/Abu Dhabi/Fujairah: Hard-earned money well spent or merely lying in a bank account - what are residents doing with their savings?
The rising cost of living continues to be the main problem for residents who are trying to save up, whether it is for their children's education or for a better home. As the burden increases, many residents are finding themselves without any money to save at the end of each month.
In a recent Gulf News poll, 57 per cent of respondents said they did not have any savings, 28 per cent said they send their savings back home and 16 per cent said they invest it.
City Talk took to the streets and asked residents if the fluctuating stock market has affected them in any way, and how they manage to keep their savings? Do they buy gold, invest it, or buy bonds?
Mariana Sa'ad, pharmacist from Egypt, 23, said: "I do not have any savings yet, as I have only been in the country for one year now. But if I did have any, I would probably put it in a bank."
Trevor Kandiah, a Sri Lankan general manager, 50, said: "I have investments in real estate back home in Sri Lanka, and because of the unstable situation there I'm used to the markets going up and down. I am not too worried by the current economic downturn because I know these things go round in cycles. In the long term my savings and investments will regain any lost value. I think the problem could be worse if everyone starts to panic and starts to withdraw savings and investments."
Mohammad Sammak, Iranian restaurant owner, 27, said: "The volatile stock market has not affected me in any way because I always transfer my money to a bank back home. The interest rates are very similar as to the ones in this country, but I still prefer to send my savings abroad."
Vishnu Nathan, sales engineer, India, 29, said: "I use my savings for investing. For the past four years I have been sending my salary at a bank in India, and then from there, I invest it. The exchange rate is good now as compared to five months ago, so I plan to continue investing in India."
Sanjeev Menon, customer service agent, India, 42, said: "Like many people I will wait and see what happens before making any decisions regarding savings and investments. I'm not going to invest in anything new, but I will keep hold of what investments I have at the moment. I have invested my savings in properties back home in India where I think they will keep their value and not be affected greatly by the global economic credit crunch.
Mohammad Imtiaz, a 26-year-old Indian who works as public relations officer at a private school, said: "I put my savings into the real estate sector here. Apart from this, I also send money to my bank account in my home country."
Ruba Shihada, a 35-year-old Palestinian homemaker, said: "What savings? I am not able to save any money, so the question of investing in something never occurred to me."
Hassan Mirza, a 35-year-old Indian who works as a project controller, said: "I am into the habit of saving. I keep money as it is and when possible I invest in real estate in India."
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