Like any parent, Madhu Arora, who is from Delhi and has been in the UAE for the past two decades, wants the best for her children.
The managing director of Saffron Media Works, a media house in Dubai, along with her husband, Vikram, has set up an education fund for her son, 16, and daughter, 11.
This reflects a trend of Indian expats placing greater emphasis on financially supporting family members, often prioritising their children’s education and helping them in other ways, such as buying them homes and cars.
“We look at our children’s future as the primary objective and provide adequately to cushion them,” says Ms Arora. “As a responsible parent I have made the necessary arrangements to offer my children a springboard through which they could start their life by both giving them a good education and financial stability.”
She explains that she has also set aside sufficient funds for her retirement, having “grown up seeing my parents invest in their retirement from an early age”.
But not all members of the Indian community are so financially prudent.
“The NRI community attributes their success largely to their educational background,” says Abhishake Mathur, the head of investment advisory services at ICICI Securities in Mumbai. “It is but natural that they focus even more on education of their children. Planning for children’s education is among the top financial goals and is related to the Indian value system.”
In some cases, however, NRIs are so focused on providing for their children’s future that they lose sight of planning for their own financial security during their retirement years, he says.
“We have seen that children’s education sometimes take precedence to even retirement planning,” says Mr Mathur.
“Retirement planning seems too far ahead in time and is not always crystallised in one’s thoughts.”
He urges expatriate Indians to dedicate some time to calculating their own eventual cash needs and hiring a financial planner to help map out how to meet their targets and needs.
“Improper financial planning can compound problems especially during retirement,” he says. “We are likely to live longer and spend more on health and would like to be independent. So it’s a good idea to spend some time on how one’s retirement would look like, where would one like to settle, what would be the likely expenses.”
Leena Parwani, the founder of iCare Advisory and chairwoman at LP Insurance Brokers, explains that it is Indian expats’ strong cultural and traditional values that play a large role in their attitudes to personal finance and sharing wealth in the family.
“They are here to make money for the future and give a good lifestyle to their kids and families,” she says.
Her advice is that first and foremost, though, expats should set aside a portion of their salary for their own needs during old age. Those who do not plan for their own future end up being financially dependent on their children, she points out.
“You pay yourself first,” says Ms Parwani. “I definitely advise every person who is working here to set 10 per cent completely aside. That’s important for their own retirement. Here we don’t pay taxes but by paying 10 per cent to ourselves, we can create our own social security programme.”
Kabir Malkani, the head of marketing at Arabian Center and Lamcy Plaza in Dubai, is from Mumbai and has been in the Emirates for 15 years. He has a five-year-old daughter, and says that he regularly saves income for his retirement, despite planning his investment to finance his child’s school and university fees.
“Indians live a life of sacrifice,” he says. “Being prepared for major events of life such as schooling, marriage, medical emergencies, is a must.”
Mr Malkani has made efforts to carefully plan for the worst and organise investments to provide for future expenses.
“I have invested in medical insurance back home in case some health issues require out-of-the-regular or special facilities or treatment. There are firms and organisations that can guide and offer financial advice on structured investment, investment funds, and retirement plans.”
Drawing up a will is also important given his family’s dependence on him financially, he adds.
“This saves a lot of hassles and ensures justice to your family in case of a tragedy. I have signed off all my investments and property to my wife and daughter, in case something happens to me.”
Ninety per cent of people of working age in India expect to provide financial support to at least one other dependant, while half plan to leave an inheritance for their children, figures which are among the highest globally, according to research by HSBC.
“Consequently, it is not surprising to see that nearly 7 out of 10 orking age people in India either never fully expect to retire or only plan to semi-retire,” says Gifford Nakajima, HSBC’s head of wealth development for UAE and Mena.
“We see that this focus on supporting dependants is also an attitude shared by NRIs in the UAE, as a result of which many have difficulties supporting themselves once they stop working.”
Indians are eager for their children to pursue careers such as medicine, engineering, and computer science, according to HSBC.
“Parents here are spending a lot of time paying for the many years of university that their children have to complete to qualify for these careers,” says Mr Nakajima.
HSBC’s research shows that only one in five parents in India expect their children to make a financial contribution to university fees. Also, many parents anticipate help in the form of a cash contribution from other family members, such as the children’s grandparents, which does not materialise in many cases.
“This gap between expectations and reality is similar to what we have seen among NRIs in the UAE, who are keen to support their children throughout university and expect support from their family, but often end up having to cover all the costs if they do not have a sustainable financial plan that then also takes away from other goals such as saving for retirement,” Mr Nakajima explains.
Ms Parwani says it is also important to prepare for all eventualities.
“What could potentially go wrong? We die early or I lose health, which would impact my savings, and I may not be able to take care of my family in the same way I can take care of them today because I have not insured my health properly,” she says.
“The very simple thing they can do is insure your life. That will help you get money and not lose your income if you’re in a situation when you’re not able to work because of your health. If you die, then the insurance will pay out to the family.”
In some cases, Indians even bring their parents and in-laws to the UAE to look after them but the cost of living and medical expenses are high, so this presents its own set of financial challenges, she adds.
HSBC’s Mr Nakajima points out that it is not only Indians in the UAE who are falling short of preparing for a comfortable retirement as they support dependants and fail to put together a sustainable financial plan.
“Working age people here expect their retirement to last 16 years, but their savings to only last 12 years. This in turn can create difficulties for future generations, who then need to support their parents.”
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Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
THE SPECS
Engine: 2.0-litre 4-cylinder turbo
Power: 275hp at 6,600rpm
Torque: 353Nm from 1,450-4,700rpm
Transmission: 8-speed dual-clutch auto
Top speed: 250kph
Fuel consumption: 6.8L/100km
On sale: Now
Price: Dh146,999
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Company%20Profile
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Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
COMPANY%20PROFILE%20
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Retail gloom
Online grocer Ocado revealed retail sales fell 5.7 per cen in its first quarter as customers switched back to pre-pandemic shopping patterns.
It was a tough comparison from a year earlier, when the UK was in lockdown, but on a two-year basis its retail division, a joint venture with Marks&Spencer, rose 31.7 per cent over the quarter.
The group added that a 15 per cent drop in customer basket size offset an 11.6. per cent rise in the number of customer transactions.
Company%20Profile
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ASIAN%20RUGBY%20CHAMPIONSHIP%202024
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How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
THE SIXTH SENSE
Starring: Bruce Willis, Toni Collette, Hayley Joel Osment
Director: M. Night Shyamalan
Rating: 5/5
COMPANY%20PROFILE
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Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
BEETLEJUICE BEETLEJUICE
Starring: Winona Ryder, Michael Keaton, Jenny Ortega
Director: Tim Burton
Rating: 3/5
UAE tour of the Netherlands
UAE squad: Rohan Mustafa (captain), Shaiman Anwar, Ghulam Shabber, Mohammed Qasim, Rameez Shahzad, Mohammed Usman, Adnan Mufti, Chirag Suri, Ahmed Raza, Imran Haider, Mohammed Naveed, Amjad Javed, Zahoor Khan, Qadeer Ahmed
Fixtures:
Monday, 1st 50-over match
Wednesday, 2nd 50-over match
Thursday, 3rd 50-over match
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Company%20profile
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SPECS
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%20Two-litre%20four-cylinder%20turbo%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E235hp%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E350Nm%3Cbr%3E%3Cstrong%3ETransmission%3A%3C%2Fstrong%3E%20Nine-speed%20automatic%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh167%2C500%20(%2445%2C000)%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%3C%2Fp%3E%0A
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
The%20specs
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COMPANY PROFILE
Founders: Sebastian Stefan, Sebastian Morar and Claudia Pacurar
Based: Dubai, UAE
Founded: 2014
Number of employees: 36
Sector: Logistics
Raised: $2.5 million
Investors: DP World, Prime Venture Partners and family offices in Saudi Arabia and the UAE
Company%20Profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3ENamara%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EJune%202022%0D%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3EMohammed%20Alnamara%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%20%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EMicrofinance%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%20%3C%2Fstrong%3E16%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3ESeries%20A%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EFamily%20offices%0D%3Cbr%3E%3C%2Fp%3E%0A
Company%20Profile
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20HyveGeo%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202023%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Abdulaziz%20bin%20Redha%2C%20Dr%20Samsurin%20Welch%2C%20Eva%20Morales%20and%20Dr%20Harjit%20Singh%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3ECambridge%20and%20Dubai%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%208%3Cbr%3E%3Cstrong%3EIndustry%3A%20%3C%2Fstrong%3ESustainability%20%26amp%3B%20Environment%3Cbr%3E%3Cstrong%3EFunding%3A%20%3C%2Fstrong%3E%24200%2C000%20plus%20undisclosed%20grant%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EVenture%20capital%20and%20government%3C%2Fp%3E%0A
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
BORDERLANDS
Starring: Cate Blanchett, Kevin Hart, Jamie Lee Curtis
Director: Eli Roth
Rating: 0/5
The%20specs
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Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.