According to the UAE Central Bank, the total domestic lending to UAE residents reached over Dh332 billion in December 2015. Lee Hoagland / The National
According to the UAE Central Bank, the total domestic lending to UAE residents reached over Dh332 billion in December 2015. Lee Hoagland / The National

UAE expats: Three simple steps to turn your finances around



With job opportunities, a multicultural environment, a growing economy and a vibrant lifestyle, it’s no surprise that people from all around the world choose the UAE as their second home.

Multiple studies have highlighted the Emirates as an attractive destination for expats.

LinkedIn named the UAE as the world’s top destination for expats for the second consecutive year in 2015. The Mercer 2015 Quality of Living Survey rated Dubai as the best city for expats in the MENA region. And, based on HSBC’s Expat Explorer 2015 survey, over half (53 per cent) regard the UAE as a good place to advance their careers.

Despite this, many fail to reach their financial goals during their tenure here.

According to the UAE Central Bank, the total domestic lending to UAE residents reached over Dh332 billion in December 2015.

So, why the struggle to save? Reasons can be attributed to a combination of high living costs, consumerism, social obligations in the new environment or a general lack of understanding on how to manage income.

Here, the price comparison website Souqalmal.com offers three tips to help you turn your finances around:

Step one: Budget, budget, budget

It’s very easy to lose sight of your goals, and succumb to the urge to spend. But, if you want to save, you have to control spending urges and budget. Start by saving a small, manageable amount each month to develop the discipline of regular saving. Set regular, achievable goals – a monthly amount that takes into account all your fixed expenses such as rent, utility bills, groceries etc. The next action is to create a budget and keep a track of all your expenses. While there may be distractions along the way, staying committed to your plan is the most important part. If you struggle, remind yourself of the bigger long-term goals you want to achieve. Even small things such as missing out on a concert or expensive dinner can make a difference.

Step two: Pay off your debt

If you have debt – whether a mortgage, car or personal loan or credit cards – work on getting rid of it faster. Having a reckless attitude towards debt can overwhelm you with more debt.

Your loans may vary in terms of interest rate, outstanding balance, tenure and terms. Borrowers often end up defaulting on loan repayments because of not knowing which debt to settle first. Choose the right repayment strategy that can help you become debt-free quicker.

Step three: Save more, faster

Once you have set some money aside, what do you do with it next? There are a range of products to stash away your extra cash, be it for the short or long term. You can open a savings account and earn interest/profit while still having the flexibility to access it at any time. While rates on savings accounts don’t generally give you huge returns, you still have instant access to funds in case of an emergency.

If you aren’t satisfied with the returns on savings accounts, opt for a fixed deposit, for a low-risk, short-term place to store your savings. Most UAE banks offer short-term and long-term fixed deposit products with flexible tenures starting from a week and going up to five years. What you earn will depend on the tenure and the amount you put into the fixed deposit. Keep in mind, your money is usually locked in for the period of the tenure and most banks will penalise you for early withdrawal.

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COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
The biog

Marital status: Separated with two young daughters

Education: Master's degree from American Univeristy of Cairo

Favourite book: That Is How They Defeat Despair by Salwa Aladian

Favourite Motto: Their happiness is your happiness

Goal: For Nefsy to become his legacy long after he is gon

The years Ramadan fell in May

1987

1954

1921

1888

The schedule

December 5 - 23: Shooting competition, Al Dhafra Shooting Club

December 9 - 24: Handicrafts competition, from 4pm until 10pm, Heritage Souq

December 11 - 20: Dates competition, from 4pm

December 12 - 20: Sour milk competition

December 13: Falcon beauty competition

December 14 and 20: Saluki races

December 15: Arabian horse races, from 4pm

December 16 - 19: Falconry competition

December 18: Camel milk competition, from 7.30 - 9.30 am

December 20 and 21: Sheep beauty competition, from 10am

December 22: The best herd of 30 camels

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MISSION: IMPOSSIBLE – FINAL RECKONING

Director: Christopher McQuarrie

Starring: Tom Cruise, Hayley Atwell, Simon Pegg

Rating: 4/5

Predictions

Predicted winners for final round of games before play-offs:

  • Friday: Delhi v Chennai - Chennai
  • Saturday: Rajasthan v Bangalore - Bangalore
  • Saturday: Hyderabad v Kolkata - Hyderabad
  • Sunday: Delhi v Mumbai - Mumbai
  • Sunday - Chennai v Punjab - Chennai

Final top-four (who will make play-offs): Chennai, Hyderabad, Mumbai and Bangalore

Getting there

The flights

Emirates and Etihad fly to Johannesburg or Cape Town daily. Flights cost from about Dh3,325, with a flying time of 8hours and 15 minutes. From there, fly South African Airlines or Air Namibia to Namibia’s Windhoek Hosea Kutako International Airport, for about Dh850. Flying time is 2 hours.

The stay

Wilderness Little Kulala offers stays from £460 (Dh2,135) per person, per night. It is one of seven Wilderness Safari lodges in Namibia; www.wilderness-safaris.com.

Skeleton Coast Safaris’ four-day adventure involves joining a very small group in a private plane, flying to some of the remotest areas in the world, with each night spent at a different camp. It costs from US$8,335.30 (Dh30,611); www.skeletoncoastsafaris.com