Growing concern over rising levels of personal debt among Emiratis

A nationwide programme to boost financial literacy among young Emiratis has been launched amid growing concern over levels of personal debt.

DUBAI // A nationwide programme to boost financial literacy among young Emiratis was launched yesterday amid growing concern over levels of personal debt.
"Financial literacy, which is critical for managing personal finances effectively, is not on par with international standards among young Emiratis," said Abdul Aziz Al Ghurari, a member of the Emirates Foundation board, chief executive of the Mashreq Group and head of the UAE Banks Federation. The Emirates Foundation is sponsoring the programme.
"The foundation has taken up this challenging task of making our youth aware of the financial discipline required to avoid the pitfalls of over-borrowing and to allocate their earnings into productive consumption and investment.
"The challenge of creating a financially literate nation is something that affects all countries.
"In the UAE, we are now seeing a long-term trend of consistent growth in personal loans. Figures from the Central Bank showed a 17.4 per cent increase in personal lending for consumption purposes in 2012.
"Too many of our young people leave school or university with only a very basic grasp or understanding of how to manage debt, and how to invest for the future."
The Isrif Sah - Spend Right, in English - programme was announced at a forum attended by Sultan Al Suwaidi, the governor of the Central Bank, and a range of experts.
The programme will focus on three areas: a mentorship scheme, community outreach and a campaign to have financial education included in the national school curriculum.
The Emirates Foundation is a national initiative that promotes youth development.
More than 70 per cent of Emiratis under the age of 30 are in debt, and the Central Bank was reviewing the number of Emiratis who defaulted on debts after a presidential decree made them immune from going to jail for writing bad security cheques.
Mashreq bank said there had been a rise in defaults among Emirati customers since the decree was issued last October.
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