The number of people in the UAE saving cash regularly has risen to more than a third in the past year, signalling a savings culture is starting to take root.
A total of 35 per cent of respondents to the National Bonds UAE Savings Index survey said they were saving regularly representing a 6 per cent jump from the year before and a 9 per cent jump from two years ago.
But worryingly, the survey revealed a perceived shortfall in savings.
A total of 87 per cent of residents did not believe their savings were adequate for the future. Only 1 per cent of residents felt their savings were "more than enough" for the future.
"People need to realise they need to save more," said Mr Al Ali. "To do that you either increase your income, which is more difficult nowadays, or you save more.
"What's more important nowadays is you decrease your expenses, especially as pay increments are not as generous as before, or do not come as frequently as before because of the global crisis."
"Changing the mindset is very important. We can see the trend, it's a positive trend," said Mohammed Qasim Al Ali, the chief executive of National Bonds, a Sharia-compliant saving scheme.
"Still, a lot of people live pay cheque to pay cheque and we need to change that to help create a brighter future."
National Bonds has been carrying out a regular survey of 611 residents across all nationalities since 2010 to gauge savings patterns.
The overall index is based on three factors: how people feel about the savings environment; whether they plan to raise the amount they save in the next six months; and how stable they feel about their financial status in the next six months.
Three in five respondents said they planned to save money, a slight increment over last year.
A total of 85 per cent of UAE residents believe their financial status will remain stable or improve in the next six months, while 92 per cent believe their income will do the same over the same period.
While this year shows a small improvement in people putting money aside, generally the results have exposed the relative lack of a savings culture. About 59 per cent of people said they saved only as and when possible, albeit a lower rate than last year. In another improvement on last year's survey, 6 per cent said they did not make any attempt to save, which was also half of the figure of two years ago.
The survey showed several shifts shift in priorities among savers. Saving for retirement replaced saving for children's education as the number one reason for putting money away.
Some differences existed between what residents saved for, according to their nationality. Weddings, a high priority for Emiratis just two years ago, are now ranked only 10th in their list of reasons for saving.
Purchasing a car and house renovations are now deemed more pressing.
However, the survey showed some people have started to take the first step towards securing their financial futures.
There was a 7 per cent drop in the number of people who said they saved much less than they had planned to over the past year. The results indicated people were gradually learning to stick to their savings plans.
It also suggested a move towards wiser spending. Fewer people claimed to be spending a lot on transport and household and utility items.
Instead, more attribute their spending to fixed costs such as children's education and rent and mortgages.