Almost half of Abu Dhabi families owe money on loans and more than 50 per cent of Emiratis have no clear plan to budget for household expenses, a government survey found.
The Quality of Life Index by the emirate's Department of Community Development (DCD) showed there is work still to be done to foster a culture of prudent financial management.
The authority hosted a panel discussion this week to raise awareness of the need to save money and strengthen the financial security of the family.
One expert spoke of his efforts to help a man who struggled on a monthly salary of close to Dh100,000 because of his poor budgeting.
It is a behavioural problem that is gradually changing. We recognise that it is a challenge
Mohammed Al Blooshi,
Department of Community Development, Abu Dhabi
Experts highlighted the dangers of people spending more instead of tightening their belts in an effort to maintain their social status.
“It is a behavioural problem that is gradually changing,” said Mohammed Al Blooshi, executive director of the strategic affairs office at DCD.
“We recognise that it is a challenge and we are offering solutions. It is also one of the main pillars for a stable family.”
Family finances under the microscope
- The survey found 47 per cent of Abu Dhabi families have loans to pay back
- 53 per cent of citizens and 42 per cent of residents do not have a clear financial plan for their families' expenses
- However, one in four Emirati families saves a significant amount of their monthly income
While concerns over the financial well-being of families remain, there was encouragement from the number of people seeking help to climb out of debt.
“You need to be responsible and do seek the knowledge because it is out there,” said Mr Al Blooshi.
“There are programmes that the government is offering and there are many solutions,” he said.
Assistance schemes in place include the Ghaya financial literacy programme, established in 2020 in partnership with the Abu Dhabi Global Market Academy and the London Institute of Banking and Finance (LIBF), with the support of the Abu Dhabi Social Support Authority, which offers guidance to Emiratis on how to be fiscally responsible.
Out of pocket on Dh100,000 a month
Even high earners can endure money troubles if they do not balance their income against their outgoings.
Emirati Saif Al Naqbi is a self-made millionaire who has made it a mission to help others after digging himself out of significant debt.
He set up the Gorich app last year to help users track their spending.
“I want every person to know that any employee can be a millionaire,” the founder of Rain Management Consultancies said.
“However, it is important to save and to have a goal to saving.”
The former banker said that residents should be wary of overdependence on credit cards.
“The main problem is that Emiratis spend too much. It is in their behaviour. They spend beyond their means and on non-essential items,” Mr Al Naqbi, 32, said.
He offered a cautionary tale of one Emirati he helped, who had found himself in financial difficulty despite earning a salary close to six figures a month.
“He contacted me saying that in spite of earning almost Dh100,000, he was always broke by the second week of the month and didn’t know where all his money was going.
“When I asked further, I found out that he had two wives, three housemaids and was spending a lot on outings and non-essential items.
“All he needed was better management of his finances and to know exactly where he spent his money.”
Mr Al Naqbi advises people to invest their money wisely to avoid being reliant on a single income.
“Open a business or invest,” he said. “But try to not only be dependent on one salary,” he said.
Mr Al Naqbi said that every person can manage their finances by having five bank accounts.
“One for your salary and one for family expenses and the third is a personal account and a fourth for savings and the last and most important is the investment account,” he said.
The five pillars of Islam
Farage on Muslim Brotherhood
Nigel Farage told Reform's annual conference that the party will proscribe the Muslim Brotherhood if he becomes Prime Minister.
"We will stop dangerous organisations with links to terrorism operating in our country," he said. "Quite why we've been so gutless about this – both Labour and Conservative – I don't know.
“All across the Middle East, countries have banned and proscribed the Muslim Brotherhood as a dangerous organisation. We will do the very same.”
It is 10 years since a ground-breaking report into the Muslim Brotherhood by Sir John Jenkins.
Among the former diplomat's findings was an assessment that “the use of extreme violence in the pursuit of the perfect Islamic society” has “never been institutionally disowned” by the movement.
The prime minister at the time, David Cameron, who commissioned the report, said membership or association with the Muslim Brotherhood was a "possible indicator of extremism" but it would not be banned.
HIJRA
Starring: Lamar Faden, Khairiah Nathmy, Nawaf Al-Dhufairy
Director: Shahad Ameen
Rating: 3/5
How much of your income do you need to save?
The more you save, the sooner you can retire. Tuan Phan, a board member of SimplyFI.com, says if you save just 5 per cent of your salary, you can expect to work for another 66 years before you are able to retire without too large a drop in income.
In other words, you will not save enough to retire comfortably. If you save 15 per cent, you can forward to another 43 working years. Up that to 40 per cent of your income, and your remaining working life drops to just 22 years. (see table)
Obviously, this is only a rough guide. How much you save will depend on variables, not least your salary and how much you already have in your pension pot. But it shows what you need to do to achieve financial independence.
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No more lice
Defining head lice
Pediculus humanus capitis are tiny wingless insects that feed on blood from the human scalp. The adult head louse is up to 3mm long, has six legs, and is tan to greyish-white in colour. The female lives up to four weeks and, once mature, can lay up to 10 eggs per day. These tiny nits firmly attach to the base of the hair shaft, get incubated by body heat and hatch in eight days or so.
Identifying lice
Lice can be identified by itching or a tickling sensation of something moving within the hair. One can confirm that a person has lice by looking closely through the hair and scalp for nits, nymphs or lice. Head lice are most frequently located behind the ears and near the neckline.
Treating lice at home
Head lice must be treated as soon as they are spotted. Start by checking everyone in the family for them, then follow these steps. Remove and wash all clothing and bedding with hot water. Apply medicine according to the label instructions. If some live lice are still found eight to 12 hours after treatment, but are moving more slowly than before, do not re-treat. Comb dead and remaining live lice out of the hair using a fine-toothed comb.
After the initial treatment, check for, comb and remove nits and lice from hair every two to three days. Soak combs and brushes in hot water for 10 minutes.Vacuum the floor and furniture, particularly where the infested person sat or lay.
Courtesy Dr Vishal Rajmal Mehta, specialist paediatrics, RAK Hospital
UAE currency: the story behind the money in your pockets
Cricket World Cup League 2
UAE squad
Rahul Chopra (captain), Aayan Afzal Khan, Ali Naseer, Aryansh Sharma, Basil Hameed, Dhruv Parashar, Junaid Siddique, Muhammad Farooq, Muhammad Jawadullah, Muhammad Waseem, Omid Rahman, Rahul Bhatia, Tanish Suri, Vishnu Sukumaran, Vriitya Aravind
Fixtures
Friday, November 1 – Oman v UAE
Sunday, November 3 – UAE v Netherlands
Thursday, November 7 – UAE v Oman
Saturday, November 9 – Netherlands v UAE
Recent winners
2002 Giselle Khoury (Colombia)
2004 Nathalie Nasralla (France)
2005 Catherine Abboud (Oceania)
2007 Grace Bijjani (Mexico)
2008 Carina El-Keddissi (Brazil)
2009 Sara Mansour (Brazil)
2010 Daniella Rahme (Australia)
2011 Maria Farah (Canada)
2012 Cynthia Moukarzel (Kuwait)
2013 Layla Yarak (Australia)
2014 Lia Saad (UAE)
2015 Cynthia Farah (Australia)
2016 Yosmely Massaad (Venezuela)
2017 Dima Safi (Ivory Coast)
2018 Rachel Younan (Australia)
