National Bonds Savings Index reveals UAE residents positive about savings environment

2018 Savings Index reveals 92% of UAE residents plan to save in 2019

  
  • 77% stated personal savings to be very important to them
  • 43% of residents hoped they could save more
  • Need to educate people on the importance of savings is critical, says National Bonds CEO

Dubai: Leading investment company, National Bonds Corporation, today launched the 2018 Savings Index. The annual survey, conducted by market research firm Sondos, reports on the savings environment in UAE and wider GCC region.

This year’s report found that 92 percent of savers in the UAE are planning to start their savings journey in 2019, up from 73.5 per cent last year. Additionally, 43 percent of savers plan to increase their savings in this year, of this, up to 39 per cent plan to start their savings in the first six months of the year, while 19 per cent of residents plan to stash away cash within six to 12 months.

The importance of regular savings cannot be stressed enough, allowing one to remain financially secure and providing a safety net in case of emergencies. In the UAE, more residents have resolved to start saving money this year, according to the latest Savings Index from National Bonds.

The index, which first launched in 2011, is central to National Bonds' efforts to instill a culture of savings in the UAE.

Despite this, the largest proportion of UAE residents are positive about the country’s savings environment with 52 per cent stating it is a good time to save. Besides, a significant drop in rents across the UAE means that there is more disposable income to save. With 49 per cent of poll respondents using rising cost of living as an excuse for being unable to save.

Mohammed Qasim Al-Ali, CEO, National Bonds, says, “The 2018 Savings Index highlights that the UAE offers an atmosphere that is conducive to creating a culture of savings. Having said that, the need to educate people on the importance of savings is still critical."

As part of a drive to raise awareness on savings, more than 130 companies in the UAE participated in 400 financial workshops as part of the Employee Savings Programme (ESP), with more than 179,000 transaction made since the launching the program.

“The UAE continues to enjoy the largest proportion of regular savers in the GCC and I am confident that we will continue to lead the way in this area if we strive to raise awareness levels on the importance of saving. With up to 92 per cent of respondents planning to save this year, the urge to save exists, we just need to foster and build this appetite," says Al-Ali.

While a culture of savings exists, only a small percentage of the UAE’s expansive expat community seems to have saved as much as they had hoped. While 51 per cent of the total respondents claimed to save regularly and 77 per cent stated personal savings to be very important to them, only 23 per cent of expats who moved to the UAE for savings purposes were positive about saving as much as they hoped, while 42 per cent were somewhat convinced that they had saved enough. In fact, up to 68 per cent of total respondents including UAE nations and expats believed that it was becoming harder to save and 43 per cent hoping that they could save more.

“Perceived barriers to saving including expenses, loans and a poor knowledge about savings instruments are drawbacks,” says Al-Ali. “However, a positive view about the economic environment being conducive to saving balances this out and will help financial institutions to approach residents with suitable instruments that promote a culture of savings.

 “We are long-time supporters of the Government’s ambition to increase financial literacy and remain committed to growing the number of savers in the UAE,” says Al-Ali, “helping achieve a healthy and secure financial future for individuals and their families. Studying the 2018 Index, the opportunity for us at National Bonds to educate residents and nationals alike on how to save is huge.”

If you are looking for savings instruments from National Bonds visit www.nationalbonds.ae 

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About National Bonds Corporation PSC
National Bonds, is a Sharia'a compliant saving scheme that provides UAE nationals, UAE residents and non-residents with a credible and safe savings opportunity.  Minors can also own National Bonds, provided the bonds are purchased by the parent/guardian. Each bond costs AED10, with a minimum purchase option of AED100. National Bonds Corporation PSC announced an annual return up to 4% for 2018. The scheme has distributed an annualized rate of return of 52% since inception, which is a combined average of annual returns and prizes distributed till 2018. National Bonds is a unique savings scheme with a diversified client base, offering:

  • Opportunity to win more than 40,000 prizes every month. These prizes include monthly and quarterly awards distributed to UAE nationals and residents in separate categories. The quarterly prize offers two participants the chance to win a million dirham award every first Sunday of the quarter. The monthly awards give two bondholders the chance to win AED10, 000 to two women bondholders, and AED 10,000 to two minor bondholders. In addition, regular savers have the chance to win 15 awards worth AED10, 000 every month. The monthly prizes also include give away cash awards valued at AED50 each. The awards are allocated to 4,000 women bondholders, 4,000 minor bondholders, 8,000 regular savers, and 24,000 awards for all individual bondholders.
  • National Bonds can be purchased from nearly 1,700 outlets across the UAE, including The Sukuk Express through MBME - The Cube machines, Emirates Post offices, exchange houses and selected banks.
  • National Bonds can also be purchased online at www.nationalbonds.ae 

For more information, please contact
Wael Karbala
National Bonds
+971502737266

© Press Release 2019

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