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- ADIB’s Moneysmart survey shows 51% of UAE residents save regularly, but only 9% invest in mutual funds
Abu Dhabi: Abu Dhabi Islamic Bank (ADIB), a leading financial institution, has unveiled a savings plan called “Khuttati” to encourage medium- to long-term investments through regular contributions.
Khuttati, which means “my plan” in Arabic, allows savers to put aside a fixed contribution amount every month into a savings plan, which provides exposure to a wide choice of Sharia’a-compliant mutual funds investing across different asset classes and currencies. The plan offers a high degree of flexibility on the saving timeframe and level of contribution with an affordable instalments of AED 1000 , which can be easily altered on request, while no charges are enforced on withdrawals.
Mutual funds are investment vehicles that pool money from investors and invest in securities such as equities, sukuk or money market instruments. Mutual funds are professionally managed by a fund manager who attempts to produce capital gains and manage risk through diversification.
“It makes sense for savers to diversify across asset classes through a variety of funds with different risk-reward characteristics,” said Saif Alkeem, Head of Wealth Management & Priority Banking at ADIB. “The Khuttati savings plan is very well structured, to allow customers to put aside some money every month with the aim of taking advantage of international markets. The maturity of the investments is also set in line with the client’s needs, and withdrawing funds is also easy. Crucially, the product is tailored to meet the varying risk appetites of clients.
ADIB’s latest Moneysmart survey of spending and saving showed that just over half of UAE residents save most months, with 5% saying they never or rarely save.
However, 46% of all respondents keep their savings in cash or deposits. Among other savers, 28% invest in their own businesses, 24% save to buy real estate, 24% invest in publicly traded shares, and only 9% place their savings into mutual funds. The three most cited reasons given to save are for emergencies (58% of respondents), home ownership (44%) and children’s education (41%). In addition, 40% said they saved for retirement and 36% said they saved for holidays.
Khuttati will be offered through ADIB’s extensive network of branches, with information available on the bank’s website, adib.com.
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About ADIB
ADIB is a leading bank in the UAE with more than AED 125 billion in assets. Its 1,044,000 customers benefit from the third largest distribution network in the UAE with 80 branches and more than 680 ATMs. The bank also offers world-class online, mobile and phone banking services, providing clients with seamless digital access to their accounts 24 hours a day. ADIB provides retail, corporate, business, private banking and wealth management solutions. The bank was established in 1997 and its shares are traded on the Abu Dhabi Securities Exchange (ADX).
In the UAE, the Bank has more than 2,000 employees and remains one of the leading banks in the recruitment, development and promotion of local talent in all the markets in which it operates. The bank has one of the highest Emiratization ratios with approx. 36 percent of the bank’s workforce being UAE Nationals.
ADIB has presence in six strategic markets: Egypt, where it has 70 branches, the Kingdom of Saudi Arabia, the United Kingdom, Sudan and Iraq.
Named World’s Best Islamic Bank by The Financial Times’ The Banker publication, ADIB has a rich track record of innovation, including introducing the award-winning Ghina savings account, award-winning co-branded cards with Etihad and Etisalat and a wide range of financing products.
For media information, please visit www.adib.ae or contact:
ADIB Brunswick Group
Radwa Shehab Sarah Abdelbary
Head of External Communications Account Director
Direct: +971 2 6910169 Direct: +971 2 234 4600
Mobile: +971504734482 Mobile: +971561748649
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