45% of Saudi residents do not save

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Approximately 45 per cent of people living in Saudi Arabia do not save any money out of their monthly income, with 60 per cent citing their low income as their reason for not doing so, according to findings in a survey by online finance group Souqalmal and Jeddah-based wealth management firm SEDCO Holdings.

The data comes in line with the Ministry of Housing urging Saudis to save for a deposit on their future home. The survey found that 83 per cent of respondents have no long term investment plans, 17 percent save less than five per cent, and 38 per cent save more than six per cent, reported Arab News.

According to official statistics the average levels of income have risen 13 per cent in the private sector as opposed to six per cent in the public sector since 2014, reported Arabian Business. Inflation rose 7.6 per cent between 2014 and 2016. Despite falling to near zero last year, it increases again at the start of 2018 due to the introduction of value added tax (VAT), with consumer prices rising 2.7 per cent in February, marginally down from three per cent in January.