- Nearly 30% of respondents say they don’t save regularly
- Despite lower saving rates overall, remittances are holding up
Dubai: Nearly 58% of UAE residents are saving less money than were a year ago, according to the yallacompare Consumer Confidence Tracker for Q2 2019.
That represents a sizeable increase on the previous quarter, when 53.6% of respondents said the same thing and is the highest figure since Q3 2018. More than 1000 UAE residents took part in the survey, which takes place every quarter and asks a range of questions on the state of UAE residents’ finances and their attitudes towards work.
A closer look at the data shows that the proportion of respondents saying they don’t save regularly has increased, from 26.9% in Q1 to 29.4% in Q2. This represents the highest proportion of ‘non savers’ since the Tracker began at the start of 2018.
Those who traditionally save smaller amounts are also shown to be saving less. Whereas 50.6% of respondents were saving AED 999 or less in the Q1 survey, 47.7% said they were managing the same amount in Q2.
In contrast, the proportion saving between AED 1000 and AED 1999 per month actually increased (from 14.1% in Q1 to 14.7% in Q2), as did the amount saving between AED 2000 and AED 2999 (from 4.6% in Q1 to 5.2% in Q2). The proportion saving more than AED 5000 per month also went up, from 1.2% in Q1 to 1.3% in Q2.
“It’s noteworthy that the amount who traditionally save smaller amounts of money has decreased, while those regularly saving more has actually increased,” said Jonathan Rawling, CFO, yallacompare. “It suggests that some of us are struggling to save at all, while others – around a fifth, according to the Tracker – have been able to put aside higher amounts of money.”
Despite the mixed outlook for savings, it appears Tracker respondents are still able to remit money. Just 4.8% said they don’t regularly send money home, down from 5.1% in Q1. There were also increases in those sending between AED 500 and AED 999 (28.7% in Q2 versus 27.1% in Q1) and those sending between AED 2000 and AED 4999 (16.3% in Q2 versus 15% in Q1).
There was a decrease, however, in those remitting between AED 1000 and AED 1999 (35.7% of respondents in Q2 versus 37.3% in Q1).
Tracker data showed a slight uptick in those planning to make a big purchase, such as a car or house, in the next 12 months (21.9% in Q2 versus 21.3% in Q1).
Behind these figures is a general decline in overall consumer confidence. Whereas 19.9% of respondents felt more confident about their finances in Q2 than they did 12 months ago, 21% felt the same way in Q1 2019. The proportion of respondents feeling less confident about their finances increased to 42.7% in Q2 2019, compared with 38.3% in Q1 2019.
About yallacompare
yallacompare is the Middle East's leading comparison site by employee count and share of online insurance sales. Using its platform, consumers can compare and buy insurance policies online, as well as apply for bank accounts, credit cards, loans, cars and more in nine markets across the MENA region. Additionally, yallacompare is committed to bringing more transparency to the region’s finance industry, and actively works to educate users so that financial literacy can be improved across the Middle East.
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