Krysia Januszewski says she keeps the equivalent of two months' salary offshore in case of an unforeseen financial emergency. Delores Johnson / The National
Krysia Januszewski says she keeps the equivalent of two months' salary offshore in case of an unforeseen financial emergency. Delores Johnson / The National

Coping with financial crisis



You never know when you will find yourself in the middle of a financial emergency as thousands of UAE-based expatriates caught in the wake of the global crisis can testify.

If you fall ill, have an accident, lose your job or suffer any crisis that threatens your income, you could suddenly find yourself unable to service your debts, and that means big trouble.

The Emirates can sometimes be an unforgiving place to run into money worries. Writing a cheque that bounces is still a criminal offence for expats though many banks will try to work with a customer to solve any financial shortfalls.

When emergency strikes, however, you need backup. So what should you do?

Everybody should have a financial cushion in case something goes wrong, says Richard Taylor of UKTaxDubai.com and a chartered financial planner with PIC Middle East. "But it is particularly important for UAE-based expats, due to the speed at which your situation can change here."

Many financial advisers recommend keeping between three to six months' salary in an instant access account, that you can get your hands on in a hurry.

That remains good advice, but thanks to record low interest rates, this strategy has a downside, Mr Taylor says. "Any money sitting in a cash account is essentially wasting away, because its value is falling in real terms after inflation. You have to strike a balance between security and getting a return on your money. There is no longer any right or wrong amount to save, it depends on how much you need to feel comfortable."

There is no question where you should keep the money. "This must be in a proper offshore jurisdiction such as the Channel Islands, Isle of Man or Switzerland, rather than in your home country, where it will be subject to local tax," says Mr Taylor.

He believes leaving cash in a home nation can be less of a worry than parking it in the Emirates. "Money held in UAE bank accounts can be frozen if you lose a job or die. If your bank gets notified that you've lost your job, they may take the final salary once its deposited in your current account to clear any outstanding debt, leaving you without enough cash to survive," Mr Taylor says.

Keeping most of your money offshore is an easy way to get around this problem.

Krysia Januszewski, a 33-year-old British expatriate, has lived and worked in Dubai for more than three years, long enough to learn the value of a financial safety net. "I have built up a pot of money that I can access from anywhere in the world, at any time, in case of emergencies," she says.

Ms Januszewski, who works as an executive assistant for a media agency in Dubai, keeps the equivalent of two months' salary in an offshore savings account with Lloyds TSB in the Isle of Man [a self-governing British crown dependency]. I also have a couple of weeks' salary sitting in a UK bank account, just in case."

She does, however, keep some money in a UAE bank, but only to cover everyday expenses. "I wouldn't build a large pot of savings in the UAE, because I don't trust the banks here. They are more likely to freeze your account in an emergency than help you out."

Ms Januszewski's reticence about local banks could be misplaced. During the global credit crisis, the UAE was one of only a few nations globally that guaranteed domestic banks and their deposits in an effort to alleviate the fallout.

For that reason it might be wise for expats to keep some of their savings in a domestic account to ensure it is easily accessible.

Ms Januszewski also has long-term pension savings on top of her rainy day fund. "I hope I never have to dip into those, I'm planning to keep them until I finally retire," she adds.

While Ms Januzsewski has thought out a backup plan, many expats do not.

Four out of 10 UAE residents save less than 10 per cent of their monthly income according to a survey this year by the price-comparison website Souqalmal.com. And half of those polled claimed they did not save anything at all.

If you run into debt and you haven't got a pot of emergency money, you need to take control of your finances quickly, says Rupert Connor, an independent financial adviser in Dubai.

"The first step is hardest - admitting you have a debt problem. Once you've done that, sort out exactly what you owe, and to whom. List your debts in order of importance. Priority debts include your mortgage and secured loans, because serious action can be taken against you if you don't pay what you owe. You could lose your home, be disconnected from a service or even go to prison," he adds.

Lower priority debts include overdrafts, store cards and money borrowed from family or friends. "You can't ignore these, but you don't need to deal with them immediately," Mr Connor says.

The next step is to run through all your income and expenses, to see where you can save money, and work out how much you can afford to repay to creditors. "Put a timescale on clearing your debts, to give you a specific target. Then find ways of rebuilding your wealth, to create a secure financial future for your family."

Building a war chest isn't the only thing you should be doing to protect against emergencies, you should also look to take out insurance, Mr Connor adds. "A sound financial security plan should also protect your loved ones against death or disability, so they can keep paying the bills even if something happens to you."

The first step is to work out how much income your family will need if you die or are too ill to work. "How much will it cost to maintain your lifestyle, service your debts, and maintain your pension payments? Don't forget that inflation will reduce the value of this income, so you are likely to need more cover than you think," Mr Connor says.

A good way to protect your dependents is to buy a life insurance policy combined with another type of protection called critical illness cover, says Chris Ferguson, managing director of Guardian Life Management in the UAE. "This pays a cash lump sum if you suffer a serious illness such as cancer, heart attack or stroke. This combined cover may be more affordable than you think."

If you bought cover before moving over here, ask your insurer if the policy still applies in the UAE, otherwise you could be simply wasting your money. "You can arrange a policy from your home country, just make sure you can claim on it if you fall ill while resident in the UAE."

You can take out life and critical illness policies in a variety of currencies, depending on where you finally plan to settle.

Expats living and working in the UAE are lucky to have access to good health care, but it is expensive, and that means private medical insurance is a must.

While all employers supply health cover in Abu Dhabi, Dubai is still preparing a law to make health insurance mandatory in the emirate, although many expats already have it through their employer. "If you do have a company-funded policy, you should check it carefully, to make sure it provides the right level of cover. Medicine is expensive in the UAE, and major operations or treatment can be very costly," Mr Ferguson warns.

Financial emergencies can take many shapes or forms. But with a bit of careful preparation and hard saving, you should be prepared for most of them.

COMPANY%20PROFILE%20
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Haltia.ai%0D%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202023%0D%3Cbr%3E%3Cstrong%3ECo-founders%3A%3C%2Fstrong%3E%20Arto%20Bendiken%20and%20Talal%20Thabet%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%0D%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20AI%0D%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2041%0D%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20About%20%241.7%20million%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Self%2C%20family%20and%20friends%26nbsp%3B%3C%2Fp%3E%0A
Results

2pm Handicap (PA) Dh85,000 1,800m

Winner AF Al Baher, Tadhg O’Shea (jockey), Ernst Oertel (trainer).

2.30pm Maiden (TB) Dh75,000 1,400m

Winner Alla Mahlak, Fabrice Veron, Rashed Bouresly.

3pm Handicap (TB) Dh80,000 1,400m

Winner Davy Lamp, Adrie de Vries, Rashed Bouresly.

3.30pm Handicap (TB) Dh105,000 1,400m

Winner Ode To Autumn, Richard Mullen, Satish Seemar.

4pm Handicap (TB) Dh80,000 1,950m

Winner Arch Gold, Pat Dobbs, Doug Watson.

4.30pm Maiden (TB) Dh75,000 1,800m

Winner Meqdam, Pat Dobbs, Doug Watson.

5pm Handicap (TB) Dh90,000 1,800m

Winner Native Appeal, Sam Hitchcott, Doug Watson.

5.30pm Maiden (TB) Dh75,000 1,400m

Winner Amani Pico, Tadhg O’Shea, Satish Seemar

PREMIER LEAGUE RESULTS

Bournemouth 1 Manchester City 2
Watford 0 Brighton and Hove Albion 0
Newcastle United 3 West Ham United 0
Huddersfield Town 0 Southampton 0
Crystal Palace 0 Swansea City 2
Manchester United 2 Leicester City 0
West Bromwich Albion 1 Stoke City 1
Chelsea 2 Everton 0
Tottenham Hotspur 1 Burnley 1
Liverpool 4 Arsenal 0

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Company%20Profile
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The biog

Birthday: February 22, 1956

Born: Madahha near Chittagong, Bangladesh

Arrived in UAE: 1978

Exercise: At least one hour a day on the Corniche, from 5.30-6am and 7pm to 8pm.

Favourite place in Abu Dhabi? “Everywhere. Wherever you go, you can relax.”

The specs

Price: From Dh180,000 (estimate)

Engine: 2.0-litre turbocharged and supercharged in-line four-cylinder

Transmission: Eight-speed automatic

Power: 320hp @ 5,700rpm

Torque: 400Nm @ 2,200rpm

Fuel economy, combined: 9.7L / 100km

Company%20profile
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20WonderTree%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20April%202016%3Cbr%3E%3Cstrong%3ECo-founders%3A%3C%2Fstrong%3E%20Muhammad%20Waqas%20and%20Muhammad%20Usman%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Karachi%2C%20Pakistan%2C%20Abu%20Dhabi%2C%20UAE%2C%20and%20Delaware%2C%20US%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20Special%20education%2C%20education%20technology%2C%20assistive%20technology%2C%20augmented%20reality%3Cbr%3EN%3Cstrong%3Eumber%20of%20staff%3A%20%3C%2Fstrong%3E16%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3EGrowth%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Grants%20from%20the%20Lego%20Foundation%2C%20UAE's%20Anjal%20Z%2C%20Unicef%2C%20Pakistan's%20Ignite%20National%20Technology%20Fund%3C%2Fp%3E%0A

Torbal Rayeh Wa Jayeh
Starring: Ali El Ghoureir, Khalil El Roumeithy, Mostafa Abo Seria
Stars: 3

Drivers’ championship standings after Singapore:

1. Lewis Hamilton, Mercedes - 263
2. Sebastian Vettel, Ferrari - 235
3. Valtteri Bottas, Mercedes - 212
4. Daniel Ricciardo, Red Bull - 162
5. Kimi Raikkonen, Ferrari - 138
6. Sergio Perez, Force India - 68

MATCH INFO

Manchester City 3
Danilo (16'), Bernardo Silva (34'), Fernandinho (72')

Brighton & Hove Albion 1
Ulloa (20')

FA Cup semi-finals

Saturday: Manchester United v Tottenham Hotspur, 8.15pm (UAE)
Sunday: Chelsea v Southampton, 6pm (UAE)

Matches on Bein Sports

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

COMPANY PROFILE
Name: Airev
Started: September 2023
Founder: Muhammad Khalid
Based: Abu Dhabi
Sector: Generative AI
Initial investment: Undisclosed
Investment stage: Series A
Investors: Core42
Current number of staff: 47
 
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Safety 'top priority' for rival hyperloop company

The chief operating officer of Hyperloop Transportation Technologies, Andres de Leon, said his company's hyperloop technology is “ready” and safe.

He said the company prioritised safety throughout its development and, last year, Munich Re, one of the world's largest reinsurance companies, announced it was ready to insure their technology.

“Our levitation, propulsion, and vacuum technology have all been developed [...] over several decades and have been deployed and tested at full scale,” he said in a statement to The National.

“Only once the system has been certified and approved will it move people,” he said.

HyperloopTT has begun designing and engineering processes for its Abu Dhabi projects and hopes to break ground soon. 

With no delivery date yet announced, Mr de Leon said timelines had to be considered carefully, as government approval, permits, and regulations could create necessary delays.

Mia Man’s tips for fermentation

- Start with a simple recipe such as yogurt or sauerkraut

- Keep your hands and kitchen tools clean. Sanitize knives, cutting boards, tongs and storage jars with boiling water before you start.

- Mold is bad: the colour pink is a sign of mold. If yogurt turns pink as it ferments, you need to discard it and start again. For kraut, if you remove the top leaves and see any sign of mold, you should discard the batch.

- Always use clean, closed, airtight lids and containers such as mason jars when fermenting yogurt and kraut. Keep the lid closed to prevent insects and contaminants from getting in.

 

Our legal consultant

Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

The specs

  Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now

Meatless Days
Sara Suleri, with an introduction by Kamila Shamsie
​​​​​​​Penguin 

Company%20profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Fasset%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2019%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Mohammad%20Raafi%20Hossain%2C%20Daniel%20Ahmed%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%0D%3Cbr%3E%3Cstrong%3EInitial%20investment%3A%3C%2Fstrong%3E%20%242.45%20million%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%3C%2Fstrong%3E%2086%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20Pre-series%20B%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Investcorp%2C%20Liberty%20City%20Ventures%2C%20Fatima%20Gobi%20Ventures%2C%20Primal%20Capital%2C%20Wealthwell%20Ventures%2C%20FHS%20Capital%2C%20VN2%20Capital%2C%20local%20family%20offices%3C%2Fp%3E%0A
ENGLAND SQUAD

Team: 15 Mike Brown, 14 Anthony Watson, 13 Ben Te'o, 12 Owen Farrell, 11 Jonny May, 10 George Ford, 9 Ben Youngs, 1 Mako Vunipola, 2 Dylan Hartley, 3 Dan Cole, 4 Joe Launchbury, 5 Maro Itoje, 6 Courtney Lawes, 7 Chris Robshaw, 8 Sam Simmonds

Replacements 16 Jamie George, 17 Alec Hepburn, 18 Harry Williams, 19 George Kruis, 20 Sam Underhill, 21 Danny Care, 22 Jonathan Joseph, 23 Jack Nowell

WHAT IS A BLACK HOLE?

1. Black holes are objects whose gravity is so strong not even light can escape their pull

2. They can be created when massive stars collapse under their own weight

3. Large black holes can also be formed when smaller ones collide and merge

4. The biggest black holes lurk at the centre of many galaxies, including our own

5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed

BMW%20M4%20Competition
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ACL Elite (West) - fixtures

Monday, Sept 30

Al Sadd v Esteghlal (8pm)
Persepolis v Pakhtakor (8pm)
Al Wasl v Al Ahli (8pm)
Al Nassr v Al Rayyan (10pm)

Tuesday, Oct 1
Al Hilal v Al Shorta (10pm)
Al Gharafa v Al Ain (10pm)

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

TOUR RESULTS AND FIXTURES

June 3: NZ Provincial Barbarians 7 Lions 13
June 7: Blues 22 Lions 16
June 10: Crusaders 3 Lions 12
June 13: Highlanders 23 Lions 22
June 17: Maori All Blacks 10 Lions 32
June 20: Chiefs 6 Lions 34
June 24: New Zealand 30 Lions 15 (First Test)
June 27: Hurricanes 31 Lions 31
July 1: New Zealand 21 Lions 24 (Second Test)
July 8: New Zealand v Lions (Third Test) - kick-off 11.30am (UAE)

Globalization and its Discontents Revisited
Joseph E. Stiglitz
W. W. Norton & Company

WHEN TO GO:

September to November or March to May; this is when visitors are most likely to see what they’ve come for.

WHERE TO STAY:

Meghauli Serai, A Taj Safari - Chitwan National Park resort (tajhotels.com) is a one-hour drive from Bharatpur Airport with stays costing from Dh1,396 per night, including taxes and breakfast. Return airport transfers cost from Dh661.

HOW TO GET THERE:

Etihad Airways regularly flies from Abu Dhabi to Kathmandu from around Dh1,500 per person return, including taxes. Buddha Air (buddhaair.com) and Yeti Airlines (yetiairlines.com) fly from Kathmandu to Bharatpur several times a day from about Dh660 return and the flight takes just 20 minutes. Driving is possible but the roads are hilly which means it will take you five or six hours to travel 148 kilometres.

Tips for job-seekers
  • Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
  • Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.

David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East

Sting & Shaggy

44/876

(Interscope)

SPECS

Engine: Two-litre four-cylinder turbo
Power: 235hp
Torque: 350Nm
Transmission: Nine-speed automatic
Price: From Dh167,500 ($45,000)
On sale: Now

RedCrow Intelligence Company Profile

Started: 2016

Founders: Hussein Nasser Eddin, Laila Akel, Tayeb Akel 

Based: Ramallah, Palestine

Sector: Technology, Security

# of staff: 13

Investment: $745,000

Investors: Palestine’s Ibtikar Fund, Abu Dhabi’s Gothams and angel investors