The UAE is witnessing a huge increase in the uptake of the social media platforms Instagram and snapchat, and is well ahead of the global average, new research from Kantar TNS reveals.
Instagram’s worldwide average usage hovers at about 42 per cent of internet users in 2016, rising from 24 per cent two years ago, says Kantar TNS, a global research consultancy. However, in this country, the figures “show a staggering 60 per cent this year compared to 38 per cent in 2014”, it says.
In Saudi Arabia, average usage increased from 57 per cent to 82 per cent in the past two years.
The popularity of Instagram and Snapchat has soared worldwide in the past two years as people seek out real, personal and “in-the-moment” content, according to the Connected Life study of more than 70,000 consumers from Kantar TNS.
But it is in this region where the growth has been most marked, the firm says. Its findings reveal clear behavioural differences between internet users in this country and Saudi Arabia when compared with the global average, Kantar TNS says, particularly regarding online advertising and the use of Instagram and Snapchat.
“Gulf markets continue to lead the way on social media usage. Globally, the use of Snapchat has almost doubled in the past two years from 12 per cent to 23 per cent,” says Stephen Hillebrand, the chief executive of Kantar Insights Menap. “However, in KSA and UAE the app has witnessed a massively higher growth in usage.”
In both of these markets it has tripled in usership, with Saudi Arabia increasing from 24 per cent in 2014 to 74 per cent in 2016, while UAE grew from 15 per cent in 2014 to 53 per cent in 2016.
“This acceleration is in line with the high social media usage we have recorded in previous studies, but the magnitude of the growth took us by surprise,” Mr Hillebrand says
Internet users in UAE and KSA are also more open to online advertising and online behaviour tracking when compared to global counterparts, the study reveals.
Despite soaring usage of popular social media platforms, globally consumers are turning their back on brands as 26 percent of respondents “actively ignore” social posts or content. Yet internet users in the UAE and Saudi Arabia buck this trend with only 17 per cent in this country and 15 per cent in Saudi Arabia ignoring brands.
“We are also seeing a far more open and tolerant attitude towards online brand promotions in key Gulf markets” says Mr Hillebrand. “While the global average suggests that 30 per cent of users object to the idea of their online behaviour being tracked by brands, in UAE and KSA consumers are more liberal in their attitudes, with only 16 per cent in each market objecting.”
The results suggest companies have a major opportunity to take advantage of the soaring uptake of Instagram and Snapchat in this region, says Michael Nicholas, the global director at Kantar TNS.
“The rise of Instagram and Snapchat taps into people’s desire for instant, entertaining content from friends, peers and influencers, often enhanced by fun filters and editing. There is a real opportunity for brands to tap into this trend by creating ‘personalisable’ and shareable content, such as videos and stories. The challenge is how to focus the right content to the right people, on the right platforms and at the right moments.”
The surge in usage of newer social media marks a significant turning point in the evolution of digital in the GCC, Kantar TNS says. Cautious in their migration to digital forum, advertisers now need to consider more channels, and understand which platform they want to target. They should also realise that unprecedented numbers of consumers are open to a dialogue with brands in the GCC markets, the firm says.
The Connected Life global study of the digital attitudes and behaviours of 70,000 internet users across 57 countries analyses how connectivity changes people’s behaviour to address the big challenges for marketers. It does so by looking in detail at consumers, connections, content and commerce, providing the strategic guidance needed to keep, engage and influence the people that matter.
The fieldwork was undertaken in all markets between June and September 2016. Instagram and Snapchat usage measured by those identified as using platform at all – daily, weekly, monthly or less often.
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if you go
The flights
Emirates flies to Delhi with fares starting from around Dh760 return, while Etihad fares cost about Dh783 return. From Delhi, there are connecting flights to Lucknow.
Where to stay
It is advisable to stay in Lucknow and make a day trip to Kannauj. A stay at the Lebua Lucknow hotel, a traditional Lucknowi mansion, is recommended. Prices start from Dh300 per night (excluding taxes).
House-hunting
Top 10 locations for inquiries from US house hunters, according to Rightmove
- Edinburgh, Scotland
- Westminster, London
- Camden, London
- Glasgow, Scotland
- Islington, London
- Kensington and Chelsea, London
- Highlands, Scotland
- Argyll and Bute, Scotland
- Fife, Scotland
- Tower Hamlets, London
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.
Tributes from the UAE's personal finance community
• Sebastien Aguilar, who heads SimplyFI.org, a non-profit community where people learn to invest Bogleheads’ style
“It is thanks to Jack Bogle’s work that this community exists and thanks to his work that many investors now get the full benefits of long term, buy and hold stock market investing.
Compared to the industry, investing using the common sense approach of a Boglehead saves a lot in costs and guarantees higher returns than the average actively managed fund over the long term.
From a personal perspective, learning how to invest using Bogle’s approach was a turning point in my life. I quickly realised there was no point chasing returns and paying expensive advisers or platforms. Once money is taken care off, you can work on what truly matters, such as family, relationships or other projects. I owe Jack Bogle for that.”
• Sam Instone, director of financial advisory firm AES International
"Thought to have saved investors over a trillion dollars, Jack Bogle’s ideas truly changed the way the world invests. Shaped by his own personal experiences, his philosophy and basic rules for investors challenged the status quo of a self-interested global industry and eventually prevailed. Loathed by many big companies and commission-driven salespeople, he has transformed the way well-informed investors and professional advisers make decisions."
• Demos Kyprianou, a board member of SimplyFI.org
"Jack Bogle for me was a rebel, a revolutionary who changed the industry and gave the little guy like me, a chance. He was also a mentor who inspired me to take the leap and take control of my own finances."
• Steve Cronin, founder of DeadSimpleSaving.com
"Obsessed with reducing fees, Jack Bogle structured Vanguard to be owned by its clients – that way the priority would be fee minimisation for clients rather than profit maximisation for the company.
His real gift to us has been the ability to invest in the stock market (buy and hold for the long term) rather than be forced to speculate (try to make profits in the shorter term) or even worse have others speculate on our behalf.
Bogle has given countless investors the ability to get on with their life while growing their wealth in the background as fast as possible. The Financial Independence movement would barely exist without this."
• Zach Holz, who blogs about financial independence at The Happiest Teacher
"Jack Bogle was one of the greatest forces for wealth democratisation the world has ever seen. He allowed people a way to be free from the parasitical "financial advisers" whose only real concern are the fat fees they get from selling you over-complicated "products" that have caused millions of people all around the world real harm.”
• Tuan Phan, a board member of SimplyFI.org
"In an industry that’s synonymous with greed, Jack Bogle was a lone wolf, swimming against the tide. When others were incentivised to enrich themselves, he stood by the ‘fiduciary’ standard – something that is badly needed in the financial industry of the UAE."
Ziina users can donate to relief efforts in Beirut
Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”
How to help
Send “thenational” to the following numbers or call the hotline on: 0502955999
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6026 – Dh 200
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
BIO
Favourite holiday destination: Turkey - because the government look after animals so well there.
Favourite film: I love scary movies. I have so many favourites but The Ring stands out.
Favourite book: The Lord of the Rings. I didn’t like the movies but I loved the books.
Favourite colour: Black.
Favourite music: Hard rock. I actually also perform as a rock DJ in Dubai.
Five personal finance podcasts from The National
To help you get started, tune into these Pocketful of Dirham episodes
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Balance is essential to happiness, health and wealth
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What is a portfolio stress test?
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What are NFTs and why are auction houses interested?
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How gamers are getting rich by earning cryptocurrencies
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Should you buy or rent a home in the UAE?
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A fraudulent investment operation where the scammer provides fake reports and generates returns for old investors through money paid by new investors, rather than through ligitimate business activities.
