Consumers splashed as much Dh10 billion a month on their credit cards in the UAE last year, with a sharp rise in spending on restaurants and staycations.
According to the Dubai-based electronic payments specialist Network International, consumers have been steadily spending between Dh9bn and Dh10bn a month on their UAE-issued credit and debit cards for the past two years.
Network, which monitors data from the card transactions it processes via some 18,000 merchants in the UAE in 2015, found that overall spending on plastic in the country grew 9 per cent last year compared with 2014. .
“The UAE economy, driven by diversification into non-oil revenues, has borne resilience to current market dynamics,” said David Mountain, Network International’s chief commercial officer.
Despite a traditional reluctance among Middle Eastern consumers to use credit cards, the number of people willing to spread their plastic is increasing as UAE banks continue to heavily promote credit cards at the same time as the popularity for online shopping is growing.
According to the Network data, UAE residents spent 23 per cent more on their cards in cafes and restaurants in 2015 than they did the previous year. Customers with Qatari-issued cards showed the biggest rise in restaurant spending with a 50 per cent jump over the previous year. Lebanese cardholders displayed the biggest appetites, remaining the highest per purchase spenders in this category.
And UAE cardholders also spent 10 per cent more at hotels inside the UAE on their cards last year than they did in 2014. Visitors from Saudi Arabia increased their spending in UAE hotels by 12 per cent, while card spending from UK visitors increased by14 per cent.
Overall hotel spending was up 4 per cent in 2015 compared with a year earlier, Network said, but the amount of money spent per purchase was lower, suggesting that room rates may be falling even though customers are visiting more often.
Unsurprisingly, customers with UAE-issued credit cards spent the most in the UAE last year. They were followed by visitors from the US, Saudi Arabia, Kuwait and Qatar as the strong US dollar made it more expensive for visitors from non-dollar linked countries to shop.
lbarnard@thenational.ae
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Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
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The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
Top investing tips for UAE residents in 2021
Build an emergency fund: Make sure you have enough cash to cover six months of expenses as a buffer against unexpected problems before you begin investing, advises Steve Cronin, the founder of DeadSimpleSaving.com.
Think long-term: When you invest, you need to have a long-term mindset, so don’t worry about momentary ups and downs in the stock market.
Invest worldwide: Diversify your investments globally, ideally by way of a global stock index fund.
Is your money tied up: Avoid anything where you cannot get your money back in full within a month at any time without any penalty.
Skip past the promises: “If an investment product is offering more than 10 per cent return per year, it is either extremely risky or a scam,” Mr Cronin says.
Choose plans with low fees: Make sure that any funds you buy do not charge more than 1 per cent in fees, Mr Cronin says. “If you invest by yourself, you can easily stay below this figure.” Managed funds and commissionable investments often come with higher fees.
Be sceptical about recommendations: If someone suggests an investment to you, ask if they stand to gain, advises Mr Cronin. “If they are receiving commission, they are unlikely to recommend an investment that’s best for you.”
Get financially independent: Mr Cronin advises UAE residents to pursue financial independence. Start with a Google search and improve your knowledge via expat investing websites or Facebook groups such as SimplyFI.
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COMPANY PROFILE
● Company: Bidzi
● Started: 2024
● Founders: Akshay Dosaj and Asif Rashid
● Based: Dubai, UAE
● Industry: M&A
● Funding size: Bootstrapped
● No of employees: Nine
Why your domicile status is important
Your UK residence status is assessed using the statutory residence test. While your residence status – ie where you live - is assessed every year, your domicile status is assessed over your lifetime.
Your domicile of origin generally comes from your parents and if your parents were not married, then it is decided by your father. Your domicile is generally the country your father considered his permanent home when you were born.
UK residents who have their permanent home ("domicile") outside the UK may not have to pay UK tax on foreign income. For example, they do not pay tax on foreign income or gains if they are less than £2,000 in the tax year and do not transfer that gain to a UK bank account.
A UK-domiciled person, however, is liable for UK tax on their worldwide income and gains when they are resident in the UK.
Graduated from the American University of Sharjah
She is the eldest of three brothers and two sisters
Has helped solve 15 cases of electric shocks
Enjoys travelling, reading and horse riding
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Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
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Tailors and retailers miss out on back-to-school rush
Tailors and retailers across the city said it was an ominous start to what is usually a busy season for sales.
With many parents opting to continue home learning for their children, the usual rush to buy school uniforms was muted this year.
“So far we have taken about 70 to 80 orders for items like shirts and trousers,” said Vikram Attrai, manager at Stallion Bespoke Tailors in Dubai.
“Last year in the same period we had about 200 orders and lots of demand.
“We custom fit uniform pieces and use materials such as cotton, wool and cashmere.
“Depending on size, a white shirt with logo is priced at about Dh100 to Dh150 and shorts, trousers, skirts and dresses cost between Dh150 to Dh250 a piece.”
A spokesman for Threads, a uniform shop based in Times Square Centre Dubai, said customer footfall had slowed down dramatically over the past few months.
“Now parents have the option to keep children doing online learning they don’t need uniforms so it has quietened down.”
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Starring: Daniella Weiss, Ari Abramowitz
Rating: 5/5
MOUNTAINHEAD REVIEW
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Director: Jesse Armstrong
Rating: 3.5/5
