I earn a monthly income of Dh30,000 ($8,168) and my husband draws a salary of Dh25,000. We have been in the UAE for 17 years.
We invested all our savings and took out a personal loan of Dh700,000 and a credit card advance of Dh250,000 to invest in a restaurant, which was operational for two years.
However, the restaurant shut down in 2022 owing to operational difficulties. We owe a total of Dh1.5 million ($408,441) to several banks.
We also have two children. One of them is still at school and we pay Dh5,000 a month for her school fees, while our yearly rent is Dh80,000.
Our entire savings have been depleted and we are struggling financially. Growth in our careers is also stagnant, which makes it hard to receive a salary rise.
Is there any way to restructure our debts and financially plan for the future? SN, Dubai
Debt Panellist 1: Steve Cronin, founder of DeadSimpleSaving.com
I am sorry you find yourself in this situation.
I am not sure what made you decide to risk everything for a restaurant.
People have this idea that to be an entrepreneur or an investor, you have to go “all in” but this is almost always a terrible idea as many start-ups fail within the first three years.
Many people seem to invest in restaurants simply because they think they know what a restaurant is — how hard can it be?
It is important to understand what an awful investment restaurants are for inexperienced investors.
They require huge amounts of upfront investment to secure the location, design and fit out the interior, get the permits, hire the staff, buy the food and market the new restaurant.
So, you start massively in the red, and then you discover you have no idea how to run a restaurant efficiently to maximise income.
This is true of restaurants in the region — both large and small.
A huge percentage last less than a year or two, then are forced to close with all that upfront money wasted.
If they do survive, there will be continuing stress as the competition is relentless. Unless you have a background in restaurant management, it is not worth it — even then, success is unlikely.
Beyond investing in a restaurant, you made three big errors.
First, you invested all your savings with no diversification of risk or investment, and no emergency fund.
Then, you took out a personal loan of more than a year’s combined salary to invest in a highly risky venture — if the venture blows up, the debt remains, as you have discovered.
Most dangerously of all, you took out a big credit card advance to fund your investment.
The interest rate on a credit card is about 40 per cent a year, plus additional fees for advances.
There is no way a restaurant (or almost any business or other investment) will make 40 per cent a year, so making a profit becomes impossible from the outset.
As restaurants take time to generate cash, you can’t even pay any of the card balance back quickly.
The other problem with credit cards is that the high interest makes the debt balloon rapidly out of control.
Watch: Ma'an's Ghaya financial literacy programme
Your Dh950,000 debt has become Dh1.5 million. One good thing is that the restaurant is no longer operating and you can now focus on restructuring your debt — and this is urgent.
You need to obtain a consolidation loan that will wipe out all your credit card debt and convert your total outstanding into one loan.
Talk to your main bank (and other banks), present your salaries and overall financial situation, then show them that you are serious about paying down your debt if you can have it restructured.
Try to talk to a senior loan officer in person at the bank's headquarters, as your debt burden is significant and you can’t rely on talking to a junior person on the phone.
If you have not yet defaulted on any minimum payments, this will work in your favour.
At the same time, see what you can do to pay down any part of the debt.
Do you have any assets you can sell? Can you borrow money from a family member? Even if you offer to pay them interest, it will be lower than the interest from the bank and certainly your credit card.
Look at ways to slash your expenses and boost your incomes, so you can improve your savings rate
Steve Cronin,
founder of DeadSimpleSaving.com
Look at ways to slash your expenses and boost your incomes, so you can improve your savings rate.
Can you find a better-paid job in another country, or change companies or industries?
Can you use any skills you have to take on additional work, coach people or start any number of low-cost side hustles that only involve your time and effort rather than your money?
A clear financial plan can only come when you know what rate and term you can secure for your consolidation loan.
Then you can work towards paying it down, building an emergency fund, identifying any major expenditure coming your way such as university fees, and learning how to invest in more sensible assets such as diversified global stock and bond funds or buy-to-let property.
You face a tough few years to get past this but you will be a lot more savvy with money when you do.
Debt Panellist 2: Carol Glynn, founder of Conscious Finance Coaching
I am sorry your business closed and you are left with this debt. This must be very stressful.
This is a substantial financial burden on a combined salary of Dh55,000.
I would recommend you approach your main bank and discuss options with them.
Request they consolidate the loans into one debt and agree on a long-term repayment plan that you can commit to.
I would also suggest focusing on repaying the credit card advance as a priority, as this type of debt is extremely expensive.
Do you have any assets you can liquidate to help reduce the debt?
Can you increase your income through a low-cost side business or part-time work?
I would recommend being very conscious of your spending habits and focusing as much cash as possible on reducing the debt over the coming years, while continuing to seek higher or additional sources of income.
The Debt Panel is a weekly column to help readers tackle their debts more effectively. If you have a question for the panel, write to pf@thenational.ae
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
EPL's youngest
- Ethan Nwaneri (Arsenal)
15 years, 181 days old
- Max Dowman (Arsenal)
15 years, 235 days old
- Jeremy Monga (Leicester)
15 years, 271 days old
- Harvey Elliott (Fulham)
16 years, 30 days old
- Matthew Briggs (Fulham)
16 years, 68 days old
AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street
The seven points are:
Shakhbout bin Sultan Street
Dhafeer Street
Hadbat Al Ghubainah Street (outbound)
Salama bint Butti Street
Al Dhafra Street
Rabdan Street
Umm Yifina Street exit (inbound)
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Match info
Manchester United 1 (Van de Beek 80') Crystal Palace 3 (Townsend 7', Zaha pen 74' & 85')
Man of the match Wilfried Zaha (Crystal Palace)
Gulf Under 19s final
Dubai College A 50-12 Dubai College B
Killing of Qassem Suleimani
Killing of Qassem Suleimani
WORLD RECORD FEES FOR GOALKEEPERS
1) Kepa Arrizabalaga, Athletic Bilbao to Chelsea (£72m)
2) Alisson, Roma to Liverpool (£67m)
3) Ederson, Benfica to Manchester City (£35m)
4) Gianluigi Buffon, Parma to Juventus (£33m)
5) Angelo Peruzzi, Inter Milan to Lazio (£15.7m
Fixtures:
Wed Aug 29 – Malaysia v Hong Kong, Nepal v Oman, UAE v Singapore
Thu Aug 30 - UAE v Nepal, Hong Kong v Singapore, Malaysia v Oman
Sat Sep 1 - UAE v Hong Kong, Oman v Singapore, Malaysia v Nepal
Sun Sep 2 – Hong Kong v Oman, Malaysia v UAE, Nepal v Singapore
Tue Sep 4 - Malaysia v Singapore, UAE v Oman, Nepal v Hong Kong
Thu Sep 6 – Final
Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
TOURNAMENT INFO
Opening fixtures:
Friday, Oct 5
8pm: Kabul Zwanan v Paktia Panthers
Saturday, Oct 6
4pm: Nangarhar Leopards v Kandahar Knights
8pm: Kabul Zwanan v Balkh Legends
Tickets
Tickets can be bought online at https://www.q-tickets.com/apl/eventlist and at the ticket office at the stadium.
TV info
The tournament will be broadcast live in the UAE on OSN Sports.
Scores in brief:
Boost Defenders 205-5 in 20 overs
(Colin Ingram 84 not out, Cameron Delport 36, William Somerville 2-28)
bt Auckland Aces 170 for 5 in 20 overs
(Rob O’Donnell 67 not out, Kyle Abbott 3-21).
Mohammed bin Zayed Majlis
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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5
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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The specs: 2019 Aston Martin DBS Superleggera
Price, base: Dh1.2 million
Engine: 5.2-litre twin-turbo V12
Transmission: Eight-speed automatic
Power: 725hp @ 6,500pm
Torque: 900Nm @ 1,800rpm
Fuel economy, combined: 12.3L / 100km (estimate)
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
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Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
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