UAE residents become frugal to be better prepared for emergencies

From cutting down on gym memberships and dining out, UAE residents say their spending habits have changed since the start of the pandemic

• 

  Shoppers head to Mall of the Emirates in Dubai on the first day of the Eid holiday. Antonie Robertson / The National

• 

  Abu Dhabi residents practice social distancing at Mushrif Mall while shopping for Eid Al Fitr. Victor Besa /The National

• 

  A mall visitor buys some coffee at Starbucks, Mushrif Mall. Victor Besa / The National

• 

  Abu Dhabi shoppers headed to Mushrif Mall on the first day of Eid Al Fitr. Victor Besa / The National

• 

  Shoppers abide by social-distancing practices at Mushrif Mall. Victor Besa / The National

• 

  Shopping centres such as Mushrif Mall are operating at 30 per cent capacity due to the coronavirus pandemic. Victor Besa / The National

• 

  A shopper at Mushrif Mall. Victor Besa / The National

• 

  Malls across the country are implementing safety regulations in order to remain operational during the pandemic. Victor Besa / The National

• 

  Shoppers keep a safe distance at Mall of the Emirates in Al Barsha, Dubai. Antonie Robertson / The National

• 

  While numbers were smaller than in previous years, many enjoyed the opportunity to shop safely on the first day of the Eid Al Fitr break. Antonie Robertson / The National

• 

  Mall of the Emirates has enforced strict regulations to keep shoppers safe, such as installing thermal scanners at entrance points. Antonie Robertson / The National

• 

  The first day of Eid gave many an opportunity to leave their homes and escape from the pressures of life amid a pandemic. Antonie Robertson / The National

• 

  Abu Dhabi residents at Al Wahda Mall on the first day of Eid Al Fitr. Victor Besa / The National

• 

  A customer in a Muji shop at Al Wahda Mall on the first day of Eid Al Fitr. Victor Besa / The National

• 

  Abu Dhabi residents at the Al Wahda Mall on the first day of Eid Al Fitr. Victor Besa / The National

• 

  Abu Dhabi residents at Al Wahda Mall on the first day of Eid Al Fitr. Tables are placed apart at the food court. Victor Besa / The National

Families in the UAE are spending less and saving more to be better prepared for emergencies.

Since the start of the pandemic, many people have lost jobs or faced salary cuts, a trend that has seen individuals become more financially responsible.

Residents who spoke to The National said they have cut back on travel, entertainment and unnecessary spending to build their savings.

Sonal Chhibber, an Indian freelancer in Dubai, said before the pandemic she went on expensive family holidays and shopping sprees with friends.

But now, she and her husband have scaled back their spending and are building an emergency fund.

Sonal Chhibber, left, with her husband and children, is now focused on saving. Courtesy: Sonal Chhibber

“Working from home has resulted in saving big time on our commuting costs, clothing, business lunches and conferences,” said Ms Chhibber, who has been a UAE resident for 14 years.

“Time spent indoors, however, has made us spend more on home entertainment and groceries. However, we have cut down on all non-essential products and services.

“We have built a comprehensive family budget and have put our family’s financial and health records in order to keep them handy during an emergency.”

Ms Chhibber said her family decided to continue living in an apartment, instead of moving to a large villa.

Moving would have increased their monthly rent by Dh5,000 ($1,361) and utility bills by Dh1,500.

She moved her three children to a more affordable school, saving Dh3,500 per month.

They also save Dh2,000 a month by reducing the amount they dine out and spend on movie nights, fun days out, and shopping.

“The Covid-19 pandemic has drastically altered how and where we choose to spend our hard-earned cash,” Ms Chhibber said.

“As a family, we are trying to make sure to use this time at home to our advantage, so that we can make the post-pandemic period as stress-free and enjoyable as possible.”

Dedra Stevenson, an American-Emirati author in Sharjah, said she and her family are also focusing more on saving.

Dedra Stevenson, an American-Emirati in Sharjah, said she spent carelessly before the pandemic. Sammy Dallal / The National

She said she has already made major cutbacks, including spending only Dh400 on fitness apps, instead of Dh4,000 a year on gym memberships.

Ms Stevenson also bought her own barista machine, so she does not need to spend Dh700 each month at cafes.

“Before, I also spent more on clothes and outings for myself and my children,” said Ms Stevenson, who has lived in the UAE for nearly 30 years.

“I spent more in malls than I should have. I was pretty careless and frivolous about my spending.”

Ms Stevenson said she has now become more financially responsible and keeps track of her spending.

She has stopped her regular outings and exercises at home.

Dedra Stevenson with her husband. The couple used to dine out a lot before the pandemic. Courtesy: Dedra Stevenson

“I think that families are fiercely aware of the fact that they need savings more than ever,” Ms Stevenson said.

“The whole world had the rug pulled from under their feet when the pandemic struck, so now people are much smarter about preparing something for emergencies.

“We’ve now witnessed a global disaster, so I suppose the older ones of us are tucking away some things for a rainy day in case it happens again in our lifetime.”

Shantelle Norman, a South African resident in Dubai, said her family has set a very tight budget.

She and her husband decided to homeschool their son, 5, as it was a more affordable option. They previously spent Dh31,800 a year on tuition fees.

“We have a very tight budget – schooling especially,” Ms Norman said.

“We budget down to the last dirham when purchasing groceries and my sons extracurricular activities because it’s beneficial to us.

“It's always important, especially now, to ensure you put money aside as a backup because you just never know what is going to happen from one day to the next. Financial responsibility is key to a happy and healthy outcome.”

She said they are saving about Dh2,000 per month on entertainment and dining out.

Seven ways to earn extra cash - in pictures

• 

  Salman Kaka at his promotions job at a mall, where he has been hired under a six-month contract. Pawan Singh / The National

• 

  Promotion jobs are popular among university students and those on a dependent visa, as firms hiring for these roles offer temporary work permits. Depending on the hours and company, a promoter can earn between Dh3,000 to Dh15,000 per month. Pawan Singh / The National

• 

  Tenants or home-owners can rent their villas or apartments. Pictured is Sonia Ngninkeu, who rents her one bedroom apartment in the Damac Park Towers on popular home-renting app Airbnb. Pawan Singh / The National

• 

  The option is available to Dubai and Ras Al Khaimah residents. A license from the economic and a permit from the tourism authority is required. Ms Ngninkeu said the money spent gets covered "very fast". Pawan Singh / The National

• 

  The Dubai Flea Market allows residents to sell old and unique items around their house without having to purchase a trade license. It costs Dh305 to book table. Courtesy: Dubai Flea Market

• 

  Freelancing also offers residents to earn a side income. A freelancing permit is required, with prices in Dubai starting Dh7,500. Professionals in the media, marketing, social media, graphic designing, copywriters, legal experts, IT or a range other fields can get short-term gigs. Alamy

• 

  Some of the most popular ways of freelancing online are on fiverr, where you can work as a translator, writer or for a a range of other required services. Many freelancing jobs get listed on social media, as well. Reuters

• 

  Residents in the UAE can also part-time jobs with a second employer, which is allowed by the Ministry of Human Resources and Emiratisation. A permit is required. Young people aged 15 to 18 can also take on part-time jobs, with contracts that must not exceed one year. Written approval from parents is required. Getty