Consumers in the UAE are saving more and spending less in 2021 as they look to create a financial safety net to protect themselves following the economic uncertainty caused by the Covid-19 pandemic, according to a new survey by online financial aggregator Policybazaar.ae.
About 41 per cent of UAE residents said that accumulation of wealth would save their children or dependents from unprecedented financial disruption, according to the survey, which polled 3,000 people.
Twenty-nine per cent of those surveyed said they had started paying more attention to reducing discretionary spending and creating an emergency fund owing to a fear of deteriorating health or existing medical conditions, the research found.
Customers are becoming more mindful of how they should spend their money and adopt new habits to save and invest for [the] future
Neeraj Gupta,
chief executive, Policybazaar.ae
“Customers are becoming more mindful of how they should spend their money and adopt new habits to save and invest for [the] future,” Neeraj Gupta, chief executive of Policybazaar.ae, said on Monday.
The Covid-19 pandemic last year tipped the world economy into its worst recession since the Great Depression, forcing countries into lockdowns that led to higher unemployment and reduced salaries, according to the International Monetary Fund.
Although governments around the world are easing restrictions and reopening their economies, the pandemic has highlighted the importance of saving and having an emergency fund for short-term liquidity needs.
The pandemic forced 28 per cent of UAE residents to prioritise their needs over wants, while 31 per cent shopped only when there were offers and discounts available, the Policybazaar.ae survey found.
Consumers spent only on essential products such as groceries, rent, utilities, transportation, healthcare and wellness products because the pandemic was a wake-up call for them to save and invest money for contingencies, the survey said.
About 67 per cent of those surveyed said they preferred to use contactless modes of payment, such as credit or debit cards, to buy essential products. Only 17 per cent preferred to shop with cash.
UAE residents are increasingly looking for ways to save money, the survey found, with nearly 62 per cent of respondents considering buying individual health insurance with critical illness riders, while 12 per cent are investing in stocks, fixed deposits and other saving schemes or cryptocurrency, according to the survey findings.
Although 16 per cent of those polled said they are still paying off debts, a majority expressed optimism about a quick economic recovery in the UAE, Policybazaaar.ae said.
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Springtime in a Broken Mirror,
Mario Benedetti, Penguin Modern Classics
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
MATCH INFO
Juventus 1 (Dybala 45')
Lazio 3 (Alberto 16', Lulic 73', Cataldi 90 4')
Red card: Rodrigo Bentancur (Juventus)
UAE WARRIORS RESULTS
Featherweight
Azouz Anwar (EGY) beat Marcelo Pontes (BRA)
TKO round 2
Catchweight 90kg
Moustafa Rashid Nada (KSA) beat Imad Al Howayeck (LEB)
Split points decision
Welterweight
Gimbat Ismailov (RUS) beat Mohammed Al Khatib (JOR)
TKO round 1
Flyweight (women)
Lucie Bertaud (FRA) beat Kelig Pinson (BEL)
Unanimous points decision
Lightweight
Alexandru Chitoran (ROU) beat Regelo Enumerables Jr (PHI)
TKO round 1
Catchweight 100kg
Marc Vleiger (NED) beat Mohamed Ali (EGY)
Rear neck choke round 1
Featherweight
James Bishop (NZ) beat Mark Valerio (PHI)
TKO round 2
Welterweight
Abdelghani Saber (EGY) beat Gerson Carvalho (BRA)
TKO round 1
Middleweight
Bakhtiyar Abbasov (AZE) beat Igor Litoshik (BLR)
Unanimous points decision
Bantamweight
Fabio Mello (BRA) beat Mark Alcoba (PHI)
Unanimous points decision
Welterweight
Ahmed Labban (LEB) v Magomedsultan Magomedsultanov (RUS)
TKO round 1
Bantamweight
Trent Girdham (AUS) beat Jayson Margallo (PHI)
TKO round 3
Lightweight
Usman Nurmagomedov (RUS) beat Roman Golovinov (UKR)
TKO round 1
Middleweight
Tarek Suleiman (SYR) beat Steve Kennedy (AUS)
Submission round 2
Lightweight
Dan Moret (USA) v Anton Kuivanen (FIN)
TKO round 2
