One in every five expats living in the GCC do not save anything from their monthly salary and nearly half save less than five percent, according to a survey.
The research found that 22% of expats surveyed reach the end of the month with no money left to save. Another 27% save less than five percent of their monthly salary and 13%said they only put aside between six percent and 20%.
At the other end of the spectrum, a fifth of expats save between 21 and 30% every month, while only 16% save more than this, the survey carried out by consultancy firm Insight Discovery shows.At a time of softness in oil prices and geo-political uncertainty, businesses have cut costs by employing fewer and cheaper expats, many of whom cannot afford to save much”
“This year, our story is one of significant adjustment in the economies of the GCC region. At a time of softness in oil prices and geo-political uncertainty, businesses have cut costs by employing fewer and cheaper expats, many of whom cannot afford to save much,” the report said.
The figures follows another recent research conducted by UAE-based financial advisory, Hoxton Capital Management, which revealed that around 85% of expatriates based in the Middle East are not saving for their retirement, and many leave for home less wealthy than when they arrived.
While expats earn higher salaries that they would achieve at home, a poor savings record has been a common them in the region. “Living and working in the UAE allows people to live a certain lifestyle and unfortunately savings can often be forgotten about,” said Gemma Frankland, head of global partners at Guardian Wealth Management told local news outlet Arabian Business.
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