UAE Minister of Economy backs findings of The National’s survey

Residents need to be smarter about making financial decisions for the future, said Sultan bin Saeed Al Mansoori, Minister of Economy

Sultan Al Mansoori, Minister of Economy, agreed with the findings of the The National’s survey, which showed residents spend most of their money on rent. Pawan Singh / The National

DUBAI // Sultan Al Mansouri, Minister of Economy, has said the country’s economy has bounced back after the financial crisis but said people need to be smarter with their money.

Both expatriates and Emiratis need to invest and save their earnings to ensure they are secure in the future, he said.

“It is very important for people to learn how to manage their money,” he said. “Not only through times of crises but also during normal times.”

Residents should seek advice from financial experts to invest their money, advised Mr Al Mansouri.

“Always seek advice from professionals before you invest or keep it in a saving account if no opportunities are available,” he said.

Mr Al Mansouri said residents should keep a constant monitor on their finances and been prudent where possible. “The best way to save is to monitor the spending and to cut on unnecessary spending that we sometime find ourselves doing,” he said.

“Make a monthly spending budget that matches your salary and try to make savings even in this wherever you can.”

Mr Al Mansouri agreed with the findings of the survey, which showed residents spent most of their money on rent.

The UAE, however, is a good place for expatriates to save and invest money, he said.

Mr Al Mansouri, who was appointed his role in 2008, said the UAE has weathered the challenges posed by the economic downturn. “The UAE economy continues to be stable which is reassuring for many investors,” he said.

The UAE economy has been growing at an average of 4.5 per cent and has delivered on promises it made following the financial crash in the latter part of 2008, he said.

“The UAE has managed the financial crises in a very solid and calculated way,” he said. “Clear vision and direction have been recognised for some time and a calculated stable growth of about 4.5 per cent have been maintained over the past few years.

“At the same time the Government has delivered many of its promised laws and regulations to support the economy and an attractive investment environment.”

Mr Al Mansouri said the average growth of 4.5 per cent was expected to continue in coming years.

His vision is to create more job opportunities and economic growth in the country through diversification of the economy, he said.

A step in the right direction was the laws for small and medium enterprises, first introduced by Mr Al Mansouri.

The law requires federal authorities and ministries to ensure that at least 10 per cent of their procurement budgets for purchasing, servicing and consulting is contracted to SMEs.

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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.

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In this series:

■ 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 8th:

■ Survey finds many UAE residents failing to save for retirement