In this series:
■ 75 per cent fail to save enough for retirement
■ Survey finds 94 per cent of UAE residents have financial worries
■ Survey finds many UAE residents failing to save for retirement
■ Experts say people must resist urge to splurge
■ Some UAE residents own eight credit cards, survey finds
■ UAE residents long for financial security
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ABU DHABI // Rent swallows up the vast majority of people’s wage and it is what residents believe is affecting their financial well-being the most.
The survey found that after rent, buying groceries, household items, school fees and car expenses are what people most spend their money on.
The average resident makes room in their budget for luxuries, too, and spends about a fifth of their wage on dining out, entertainment and leisure and clothing.
Abdulrahman Ahmad Abdulrahman, an Emirati, says his biggest financial expenditure each month is rent, while his biggest financial worry is thinking about a new home.
Despite this, the Dubai-based project control engineer saves more than half his monthly salary each month.
“I put away 55 per cent. I save and I am happy with what I am saving for the future,” he says.
However, the 25-year-old likes his luxuries too and said his biggest splurge is holidays.
Halim El Habouni, 28, from Morocco, says most of his salary is spent on rent followed by transportation.
“Rent, of course, is very expensive,” says the salesman from Abu Dhabi.
Mohammed Iqbal, 52, a driver for a restaurant, has spent more than 30 years living and working in the UAE.
During his three decades living in the UAE, he has found it increasingly difficult to cope financially.
“Everything is very expensive now,” says the Pakistani expatriate. “Everything. Medical, car parking, bills. For those with a low salary, it is not good for them here.”
“The job is good but the system is bad,” he says.
Tu Jing, from China, is a nurse at Abu Dhabi’s Burjeel Hospital and has been living in the emirate for two months.
As her job gives her housing, it allows her to save half of her monthly salary.
“The rents are so high,” she says. “Luckily for me I am a nurse and the hospital offers housing, which is good because housing is so expensive.
“I spend most on food and then clothes,” she says. “While I do go out sometimes, I save too. I save half and half I spend.”
Fowzia Sharhan Alotiba, 26, an Emirati, says her biggest financial worry is having to depend only on her salary.
She saves 20 per cent of her earnings every month and spends most of her money on sporting activities.
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About this series:
A study into the saving habits of Emiratis and expatriates found a quarter of all employed residents do not save any of their monthly wage. And 69 per cent have not started planning for retirement. The survey found that only 6 per cent of respondents do not have any financial worries. The majority of people’s wages are spent on rent, followed by groceries and household items leaving some residents dependent on multiple credit cards and longing for financial security. Financial experts advise residents to resist overspending to avoid a struggle when faced with unexpected expenses.
Coverage from March 9th:
■ Majority of expats in UAE sending money abroad, survey finds
■ High cost of living forces half of expats to consider leaving UAE
Coverage from March 10th:
■ UAE workforce is largely satisfied in their jobs
■ Emergency cash reserves needed in case of redundancy, says financial advisor
■ Most UAE employees unhappy with frequency of pay rises, survey shows
■ Many UAE workers fearful over losing their jobs
jbell@thenational.ae
