More than eight in 10 savers in the UAE believe it is important to have an emergency fund in place to survive difficult economic times, driven by the financial lessons learnt during the Covid-19 pandemic, according to a new study by Sharia-compliant savings and investment company National Bonds.
Sixty-four per cent of respondents to the annual National Bonds Savings Index said they were now working towards establishing an emergency fund to protect their financial futures, the study found.
“People have learnt a lot from the Covid-19 experience about the importance of having an emergency fund or having enough funds to sustain [them] and then, God forbid, they lose their jobs and to sustain their families as well,” said Mohammed Qasim Al Ali, group chief executive of National Bonds, which is owned by the Investment Corporation of Dubai.
“I think that Covid-19 has really been the ultimate lesson for us all that life can stop in a second.”
The National Bonds Savings Index was launched in 2011. This year’s survey was conducted by data consultancy company Kantar, which polled 2,000 people in the UAE on their savings behaviour.
The pandemic raised widespread concern over personal financial issues as millions of people globally were either furloughed or lost their jobs, highlighting the importance of saving, having an emergency fund for short-term cash needs and enough money for retirement.
An emergency fund is money set aside for the purpose of unexpected financial expenses, such as a medical emergency, a job loss or unplanned car or home repairs. It is typically a static number equal to about three to six months of a person’s expenses depending on their financial commitments.
More than one third of respondents to the National Bonds Savings Index survey said they planned to retire in the UAE because of the country’s “stability”.
“This has led to a significant number of individuals, particularly expat Arabs, considering longer-term investment opportunities within the country as well as 60 per cent of Asians, and Westerner respondents are eyeing the UAE as an investment destination,” it said.
The UAE, the second-largest Arab economy, has recovered strongly from the pandemic-induced slowdown on the back of the government’s fiscal and monetary measures.
The UAE has also undertaken several economic, legal and social reforms to strengthen its business environment, increase foreign direct investment, attract skilled workers and provide incentives to companies to set up or expand their operations.
The government’s overhaul of a number of visa programmes, including the golden visa, green visa and retirement visa, has also boosted opportunities for residents to put down roots in the Emirates.
Last October, National Bonds launched a Golden Pension Scheme to help private sector foreign employees with their retirement planning.
Under the scheme, employers can choose to either invest the entire end-of-service benefits accumulated over the years as a lump sum or invest a portion of it, while employees can contribute as little as Dh100 ($27.22) a month.
In April this year, the company, which has 850,000 customers and almost Dh14 billion in investments, also unveiled its Second Salary programme that aims to generate a supplementary income for Emiratis and residents during retirement.
The programme comprises a saving phase, in which customers deposit money into National Bonds every month for a period of between three and 10 years, and an income phase, which allows customers to draw an income every month, the company said at the time.
“We have seen that there is a huge increase of 176 per cent in the disciplined monthly saving plans that our customers opted for in the first half of 2023 compared with the first half of 2022,” Mr Al Ali said.
Watch: Who is eligible for a UAE Golden Visa under new rules?
"That indicates that the public, in general, is now understanding the importance of savings to protect themselves and their loved ones."
Meanwhile, 68 per cent of those polled by National Bonds who have not yet started saving say they plan to begin within the next six months to a year, while 76 per cent said they are thinking about saving and investing specifically in the UAE.
Despite the UAE’s improving savings culture, 18 per cent of respondents are uncertain about suitable savings avenues, highlighting the importance of ongoing awareness campaigns focused on promoting financial knowledge, National Bonds said.
However, dependence on a single source of income is one of the major concerns for 33 per cent of the respondents, particularly women in their 40s, it added.
Both Emiratis and expatriates share key savings aspirations, including starting their own business, purchasing a home and securing future education for themselves and their children, the survey found.
“Savings is … a journey. It's not a random thing that we do in our life. We have to be disciplined. And the more discipline, the better. You end up with better results, of course, in your life,” Mr Al Ali said.
KILLING OF QASSEM SULEIMANI
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Vaccine Progress in the Middle East
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Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
The specs: Aston Martin DB11 V8 vs Ferrari GTC4Lusso T
Price, base: Dh840,000; Dh120,000
Engine: 4.0L V8 twin-turbo; 3.9L V8 turbo
Transmission: Eight-speed automatic; seven-speed automatic
Power: 509hp @ 6,000rpm; 601hp @ 7,500rpm
Torque: 695Nm @ 2,000rpm; 760Nm @ 3,000rpm
Fuel economy, combined: 9.9L / 100km; 11.6L / 100km
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What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
The Kingfisher Secret
Anonymous, Penguin Books
Leading all-time NBA scorers
Kareem Abdul-Jabbar 38,387
Karl Malone 36,928
Kobe Bryant 33,643
Michael Jordan 32,292
LeBron James 31,425
Wilt Chamberlain 31,419
RESULTS
Argentina 4 Haiti 0
Peru 2 Scotland 0
Panama 0 Northern Ireland 0
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
Nepotism is the name of the game
Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad.
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%3Cp%3ECompany%3A%20Zywa%3Cbr%3EStarted%3A%202021%3Cbr%3EFounders%3A%20Nuha%20Hashem%20and%20Alok%20Kumar%3Cbr%3EBased%3A%20UAE%3Cbr%3EIndustry%3A%20FinTech%3Cbr%3EFunding%20size%3A%20%243m%3Cbr%3ECompany%20valuation%3A%20%2430m%3C%2Fp%3E%0A
Gully Boy
Director: Zoya Akhtar
Producer: Excel Entertainment & Tiger Baby
Cast: Ranveer Singh, Alia Bhatt, Kalki Koechlin, Siddhant Chaturvedi
Rating: 4/5 stars
