Ohood Al Roumi, UAE Minister of State for Happiness and Wellbeing, holds up a newspaper dated November 11, 1971 with UAE Founding Father Sheikh Zayed's words as the headline: “My wealth is the happiness of my people”. Courtesy World Government Summit
Ohood Al Roumi, UAE Minister of State for Happiness and Wellbeing, holds up a newspaper dated November 11, 1971 with UAE Founding Father Sheikh Zayed's words as the headline: “My wealth is the happineShow more

Wealth and happiness: hitting the sweet spot



Rising living costs in the UAE were already a harsh reality before the introduction of VAT and now many items are at least 5 per cent dearer than they were this time last year. What impact does this have on wellbeing?

Income, cost-of-living and emotional wellbeing are intertwined in a complex relationship, and the answer to such questions is never simple.

We all pay lip service to phrases such as "money can’t buy happiness", but in the same breath we readily acknowledge that debt, relative poverty and financial struggles can take their toll on our subjective wellbeing and happiness. So how much money do we need to earn each year to keep us happy? What is the price of happiness?

The answer to this knotty question lies in the concept of “income satiation”, the idea that there is a magic number, a point at which increases in income no longer lead to improvements in subjective wellbeing. It suggests that income and emotional wellbeing are related up to a certain point. Once you pass this point, increased income stops being associated with uplifts in wellbeing. But what is the magic number, the sweet spot, where income has purchased all the happiness that it can buy?

A study published earlier this year in the journal Nature Human Behavior set out to explore this question. The research team from the department of psychological sciences at Purdue University looked at data from the Gallup World Poll, comprising a representative sample of over 1.7 million people worldwide.

The team found that, globally, income satiation – the sweet spot – occurs at around $60,000-$75,000 per annum. In other words, if you are earning $75,000, then a 25 per cent pay rise is not going to increase your emotional wellbeing very much. You might be overjoyed to receive it, but this joy would be fairly shortlived – not the more enduring uplift that is characteristic of emotional wellbeing.

This global income satiation point, however, does not work for the UAE. The study found that income satiation, much like cost-of-living, varies greatly around the world. In general, satiation occurred later in wealthier countries.

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While the study doesn’t provide data for individual countries, the figures for the Middle East and North Africa suggest that this region has a higher satiation point than the global average. For the MENA region, an annual income of $110,000-$125,000 represented the point at which more money no longer brought more happiness.

If you are living in the UAE on an annual income of Dh460,000 and you get a massive pay rise, it might be nice, you may even celebrate, but it is not likely to improve your long term subjective well-being. It is also worth considering that particularly huge increases in annual income can be associated with a reduction in wellbeing too – more money, more problems.

One study, published in the International Journal of Psychiatry in Clinical Practice, describes several cases of big lottery winners who become severely depressed after their wins. The problems typically revolve around giving up their old jobs and moving into new accommodation in upmarket neighbourhoods. Lifestyle changes can disconnect people from colleagues and old friends.

The big winners also experience rifts in the family, with relatives bombarding them with ideas for “investment opportunities”, and requests for charitable donations.

Another issue for people who experience large increases in income, whether by chance or through skill and industry, is problems with parenting. The idea is that these individuals, first-generation millionaires from humble economic circumstances suddenly inhabit a strange new land of wealth and privilege. The children of these “immigrants to wealth” are born into affluence, and grow up with the values of this strange new land.

This situation can be an ongoing source of conflict, tension and sorrow within such families.

There is a relationship between income and wellbeing up to a point, but good human relationships are a much better predictor of wellbeing than income.

Dr Justin Thomas is professor of psychology at Zayed University and author of Psychological Well-Being in the Gulf States

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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.

Trolls World Tour

Directed by: Walt Dohrn, David Smith

Starring: Anna Kendrick, Justin Timberlake

Rating: 4 stars

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MATCH INFO

France 3
Umtiti (8'), Griezmann (29' pen), Dembele (63')

Italy 1
Bonucci (36')

COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Jigra
Director: Vasan Bala
Starring: Alia Bhatt, Vedang Raina, Manoj Pahwa, Harsh Singh
Rated: 3.5/5
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The five types of long-term residential visas

Obed Suhail of ServiceMarket, an online home services marketplace, outlines the five types of long-term residential visas:

Investors:

A 10-year residency visa can be obtained by investors who invest Dh10 million, out of which 60 per cent should not be in real estate. It can be a public investment through a deposit or in a business. Those who invest Dh5 million or more in property are eligible for a five-year residency visa. The invested amount should be completely owned by the investors, not loaned, and retained for at least three years.

Entrepreneurs:

A five-year multiple entry visa is available to entrepreneurs with a previous project worth Dh0.5m or those with the approval of an accredited business incubator in the UAE.  

Specialists

Expats with specialised talents, including doctors, specialists, scientists, inventors, and creative individuals working in the field of culture and art are eligible for a 10-year visa, given that they have a valid employment contract in one of these fields in the country.

Outstanding students:

A five-year visa will be granted to outstanding students who have a grade of 95 per cent or higher in a secondary school, or those who graduate with a GPA of 3.75 from a university. 

Retirees:

Expats who are at least 55 years old can obtain a five-year retirement visa if they invest Dh2m in property, have savings of Dh1m or more, or have a monthly income of at least Dh20,000.

PSG's line up

GK: Alphonse Areola (youth academy)

Defence - RB: Dani Alves (free transfer); CB: Marquinhos (€31.4 million); CB: Thiago Silva (€42m); LB: Layvin Kurzawa (€23m)

Midfield - Angel di Maria (€47m); Adrien Rabiot (youth academy); Marco Verratti (€12m)

Forwards - Neymar (€222m); Edinson Cavani (€63m); Kylian Mbappe (initial: loan; to buy: €180m)

Total cost: €440.4m (€620.4m if Mbappe makes permanent move)

Players Selected for La Liga Trials

U18 Age Group
Name: Ahmed Salam (Malaga)
Position: Right Wing
Nationality: Jordanian

Name: Yahia Iraqi (Malaga)
Position: Left Wing
Nationality: Morocco

Name: Mohammed Bouherrafa (Almeria)
Position: Centre-Midfield
Nationality: French

Name: Mohammed Rajeh (Cadiz)
Position: Striker
Nationality: Jordanian

U16 Age Group
Name: Mehdi Elkhamlichi (Malaga)
Position: Lead Striker
Nationality: Morocco

EA Sports FC 25
The specs

  Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now

Should late investors consider cryptocurrencies?

Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.

They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.

“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.

He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.

Napoleon
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The specs

Engine: 1.5-litre 4-cylinder petrol

Power: 154bhp

Torque: 250Nm

Transmission: 7-speed automatic with 8-speed sports option 

Price: From Dh79,600

On sale: Now

Pieces of Her

Stars: Toni Collette, Bella Heathcote, David Wenham, Omari Hardwick   

Director: Minkie Spiro

Rating:2/5

Call of Duty: Black Ops 6

Developer: Treyarch, Raven Software
Publisher:  Activision
Console: PlayStation 4 & 5, Windows, Xbox One & Series X/S
Rating: 3.5/5

Joker: Folie a Deux

Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson

Director: Todd Phillips 

Rating: 2/5

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COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
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COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
MATCH INFO

Liverpool 2 (Van Dijk 18', 24')

Brighton 1 (Dunk 79')

Red card: Alisson (Liverpool)

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

SPECS
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The specS: 2018 Toyota Camry

Price: base / as tested: Dh91,000 / Dh114,000

Engine: 3.5-litre V6

Gearbox: Eight-speed automatic

Power: 298hp @ 6,600rpm

Torque: 356Nm @ 4,700rpm

Fuel economy, combined: 7.0L / 100km

The five pillars of Islam

1. Fasting

2. Prayer

3. Hajj

4. Shahada

5. Zakat