More expats seek advice from financial planners

Dubai: As rising inflation in Gulf countries takes a toll on people's earnings, more expatriates are now seeking advice from professional financial planners on how to manage their money, according to the latest survey findings of Zurich International Life (ZIL).

The numbers, however, could have surged further if people knew where and who to go to seek financial advice, feels the company's regional director (Middle East) Paul Haran, who released the second annual edition of ZIL's Expatriate Wealth Monitor on Tuesday in Dubai.

The survey, which interviewed 700 expatriate professionals in the UAE, Bahrain and, for the first time, Qatar, found that in the UAE, the propensity to go to a professional financial adviser has increased from three per cent last year to 6.3 per cent in 2008.

Despite the increased motivation to save and invest for the future, the study revealed that 57 per cent of expatriates in the UAE were unsure where to seek financial advice from, with over one-fifth (22 per cent) preferring to rely on their own knowledge. However, the most compelling influencing factor affecting expatriates' investment decisions remains "word of mouth" with an average of 70 per cent citing it as the most important guide.

Haran said expatriates, who are planning to stay for a longer term in the region, are increasingly feeling the pinch of rising inflation. They are spending less on luxuries and lifestyle products and concentrating more on savings, children's education and pension. They typically become the target customers of professional financial advice providers such as ZIL.

"A majority of expatriates feel they are better off here lifestyle-wise than in their home countries. So a large number of them are staying here with a longer-term outlook, many planning to retire here. The importance of longer-term savings and financial plans such as pension schemes for them are increasing and providing an opportunity for us," said Haran.

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