64 per cent of respondents in the National Bonds Savings Index Survey working towards establishing an emergency fund. Image Credit: Shutterstock

Dubai: New data from savings and investment company National Bonds has revealed that over 60 per cent of employees under 30 maintain an emergency fund of Dh40,000, with a majority being Emiratis living in Dubai. And this reflects a positive trend in the financial habits of the country’s youth.

Moreover, the company also said that reliance on a sole source of income is still a concern for many individuals, particularly among women in their 40s.

The findings, derived from the results of the 12th edition of the National Bonds Savings Index (an annual survey on the saving behaviour in the UAE), also revealed that 64 per cent of respondents are working towards establishing an emergency fund. Over 2,000 UAE residents were surveyed for the Index. 

The report also indicates that 76 per cent of participants are thinking about saving and investing in the UAE, particularly young individuals aged (21-29), both Emirati and Arab expats. “This result demonstrates the increasing financial literacy among the younger generation, in which they have more access and connectedness to information,” said the company. Also, about 68 per cent of respondents who have yet to start a savings plan would likely begin to save within the next six months to a year, said the survey.

Second salary

Aligning with their mission to introduce diverse savings solutions, National Bonds said that the Second Salary plan addresses these challenges and caters to various demographic segments. “The Second Salary plan is designed to provide a supplementary income and ensure long-term financial stability,” said the company.

Mohammed Qasim Al Ali, Group Chief Executive Officer of National Bonds, said, “These plans are aimed to help individuals and corporates to invest in their future and support corporates with employee retention strategies.”

He added, “Our goal is to reach a broader audience, extend our impact, and benefit an even wider range of individuals.”

Monthly contribution of Dh1,000

The company explained that the Second Salary plan allows its customers to choose a flexible tenor ranging from three to ten years.

“We offer competitive expected profits that are reinvested monthly throughout the duration. Notably, individuals can initiate their savings journey with a minimum monthly contribution of just Dh1,000,” said the company.

According to the survey, Emiratis and expats share fundamental savings aspirations, including starting their own business, purchasing a home, and securing future education for themselves and their children. Al Ali said, “We strongly emphasise providing savings and investment solutions that serve as invaluable resources during emergencies, with a steadfast commitment to fostering a saving culture among individuals.”