Having money in the bank has many advantages, including easy access and low risk. These perks in combination with a lack of understanding of other investment options mean that many people continue to park their savings in a regular account with no growth.
Financial experts agree that other than saving for short-term goals or emergency funds, putting all your money in a regular savings account could diminish its value in the long run due to inflation.
Deciding where to hold your money is dependent on inflation, financial goals and the need for liquidity.
Choosing the ideal savings scheme
“One must consider the current inflation rate to ensure that the savings earn a rate of return that matches or surpasses inflation, preserving the purchasing power,” says Jelena Janjusevic, associate professor of finance at Heriot-Watt University Dubai.
“Also, assess risk tolerance as higher yields typically accompany greater risks, and determine how much risk you are comfortable assuming to achieve a higher return on your savings.”
The projected inflation rate in the UAE for 2024 is around 2.3 per cent, according to the Central Bank of the UAE.
So, unless your savings in the country are increasing in value by at least 2.3 per cent per annum, you’re losing money.
“Evaluate liquidity requirements and choose a savings vehicle that permits easy access to funds without penalties or limitations,” Ms Janjusevic says.
“Lastly, align your yield calculations with long-term financial objectives, whether saving for immediate needs or future goals such as retirement.”
We compiled a list of eight low-risk savings products in the UAE.
National Bonds
National Bonds claims it offers profits ranging up to 11 per cent per annum across diverse products such as Second Salary, The Payout, Term Sukuk and My One Million.
As an example, the Term Sukuk is great for someone who already has money saved and can keep it parked for a short time. This Sharia-compliant low-risk bond instrument has tenures starting from three months for a year at a minimum investment of Dh10,000. Profit rates in 2023 ranged from 4.4 to 4.9 per cent per annum.
However, if you need a more liquid option, National Bonds has products where money can be redeemed easily after an initial lock-in period, which ranges from 30 to 90 days.
Subscription fees and withdrawal charges may apply, depending on the timing of the withdrawals.
Mashreq Money Multiplier
This savings account in Mashreq offers 1.5 to 3 per cent profit on savings tied to a spend/remit condition. For instance, if you save Dh10,000 to Dh29,999 and commit to a spend/remit slab of Dh3,000 to 7,999 in a month, you’ll be eligible to earn 1.5 per cent interest.
The highest rate of 3 per cent is paid to savers who hold an average monthly balance of Dh150,000 to Dh200,000 with a monthly spend/remit requirement of Dh20,000. If the saver falls below the spending threshold, interest paid will be lower.
Wio Fixed Saving Spaces
Digital bank Wio offers up to 5.5 per cent in interest income for certain account holders. This rate is applicable on Fixed Savings Spaces, which is only accessible to Plus Plan subscribers. Tenures available range from one month to a year.
You could also choose to hold savings in the more flexible Saving Spaces which offers 5 per cent interest, subject to terms and conditions.
The Plus Plan requires account holders to maintain a minimum balance of Dh35,000 across the main account, savings and investments. The deposit itself does not have a minimum requirement.
Liv Money Ahead
Liv, the digital banking subsidiary of Emirates NBD, offers up to 3.5 per cent interest on their fixed savings scheme called Money Ahead Deposits.
A minimum deposit of Dh10,000 is required, with tenure options from one month to a year. Interest rates start at 2.1 per cent for a month, while the highest interest rate of 3.5 per cent is paid on deposits held for 12 months.
FAB iSave
First Abu Dhabi Bank (FAB) has a savings account that offers interest ranging up to 3.2 per cent, where the higher ranges are applicable for deposits more than Dh500,000.
However, the bank conducts promotional campaigns and this year account holders or new customers can start iSave accounts to get up to 5.25 per cent in interest income. This offer is only valid until September.
Money market funds make the perfect option for short-term savings
Bilal Abou-Diab,
co-founder and chief executive, Vault Wealth
ADCB Active Saver
Targeted towards individuals with a huge chunk of money in hand, this account offers interest rates of up to 2.25 per cent per annum.
The high rate is applicable to accounts that hold upwards of Dh2 million, making it suitable for residents who have a retirement fund.
Sarwa Save
Money market funds are now increasing in popularity as low-risk modest-growth avenues for investment.
Bilal Abou-Diab, co-founder and chief executive of Vault Wealth, says these funds make the perfect option for short-term savings and “allows the saver to hold something where their principal is highly liquid and super safe, yet generate a short-term income level that is in line with the interest rates available to uber wealthy individuals”.
UAE-based investment platform Sarwa has both Sharia-compliant and traditional savings products invested in money market funds starting from $500 and no lock-in period.
The traditional Sarwa Save+ has a projected return rate of 5.1 per cent before fees, while Sarwa Save Halal offers 4.6 per cent before fees.
The platform charges 0.5 per cent as an annual management fee.
StashAway Simple
StashAway, another UAE-based investment platform, also has a savings product where money is invested in a Sharia-compliant money market fund.
The management fee is 0.3 per cent with a projected rate of return of 4.7 per cent.
The National is not promoting these products. These rates are as advertised on published date and subject to terms and conditions, which can be changed at the discretion of the provider. All stock market investments are subject to market risks.
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
Other acts on the Jazz Garden bill
Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Kat Wightman's tips on how to create zones in large spaces
- Area carpets or rugs are the easiest way to segregate spaces while also unifying them.
- Lighting can help define areas. Try pendant lighting over dining tables, and side and floor lamps in living areas.
- Keep the colour palette the same in a room, but combine different tones and textures in different zone. A common accent colour dotted throughout the space brings it together.
- Don’t be afraid to use furniture to break up the space. For example, if you have a sofa placed in the middle of the room, a console unit behind it will give good punctuation.
- Use a considered collection of prints and artworks that work together to form a cohesive journey.
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
Results
5pm: UAE Martyrs Cup (TB) Conditions Dh90,000 2,200m
Winner: Mudaarab, Jim Crowley (jockey), Erwan Charpy (trainer).
5.30pm: Wathba Stallions Cup (PA) Handicap Dh70,000 1,400m
Winner: Jawal Al Reef, Richard Mullen, Hassan Al Hammadi.
6pm: UAE Matyrs Trophy (PA) Maiden Dh80,000 1,600m
Winner: Salima Al Reef, Jesus Rosales, Abdallah Al Hammadi.
6.30pm: Sheikha Fatima bint Mubarak (IFAHR) Apprentice Championship (PA) Prestige Dh100,000 1,600m
Winner: Bainoona, Ricardo Iacopini, Eric Lemartinel.
7pm: Sheikha Fatima bint Mubarak (IFAHR) Ladies World Championship (PA) Prestige Dh125,000 1,600m
Winner: Assyad, Victoria Larsen, Eric Lemartinel.
8pm: Sheikh Zayed bin Sultan Al Nahyan Jewel Crown (PA) Group 1 Dh5,000,000 1,600m
Winner: Mashhur Al Khalediah, Jean-Bernard Eyquem, Phillip Collington.
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'Unrivaled: Why America Will Remain the World’s Sole Superpower'
Michael Beckley, Cornell Press
