Dubai Expats Not Saving Enough

Despite enjoying tax-free earnings Expats in Dubai are not putting enough aside for their future.

London, UK (Pryce Warner International) October 4th, 2011 – A new study of Expats in Dubai revealed that only a small percentage are saving enough for their future.

The study also revealed that most Expats believe that their retirement income is dependent on their earlier savings activity. This disparity is perhaps explained by the fact that Expats often choose to save their earnings offshore rather than in local banks.

Another reason suggested by the study is that many who move to the United Arab Emirates (UAE) can end up living beyond their means considering the availability and temptation of a highly luxurious lifestyle.

The UAE has also recently seen a large increase in the cost of living, which may explain why some expats re unable to find enough resources to put aside for the future. Some of the most expensive things in the UAE were reported to be travel expenses and school fees.

The majority of Expats reported that they struggled to put aside more than 10% of their salary after paying for all necessities. Those that reported they were saving often said that they did not use local banks and instead chose to save offshore, as it provided greater benefits and security.

David Harra, a Senior Market & Investment Analyst with Pryce Warner International, a Financial Services Provider for Expats, commented: “Many Expats are lured to Dubai by the prospect of high earnings and little tax only to find that the cost of living cancels out any benefit. Many have said that they relative cost of items is highly unusual, with groceries and cars being very expensive, but petrol and consumer electronics being very cheap. Any Expats presently saving offshore in Dubai are wise to do so as this enables a much greater return on investment than traditional savings accounts. Any Expats not presently doing so should speak to financial advisors to establish whether or not offshore savings would be appropriate for them.”

Pryce Warner International Group provide International Asset & Investment Management, Independent Financial Advice & QROPS Overseas Pensions.

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By: Aneil Fatania
Financial Editor
Pryce Warner International Group
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