As school fees rise, so too do the number of financial products used to pay for them. Last week, The National reported on an offer introduced by one local bank that allows consumers to spread spending on a year’s worth of tuition fees over 18 months, which is just the latest indicator of the financial pressures many families find themselves under. The report also noted that more expatriates are finding it harder to fund their lifestyles and are borrowing to cover living expenses. According to statistics from the credit bureau, the average resident with debt has two loans.
Several factors are fuelling this increased demand for credit. Rents have risen sharply since 2011 in Dubai and tenants in Abu Dhabi have found themselves under more financial pressure since the rent cap was removed in 2013. The price of petrol and utilities have also risen this year as the Government reduces subsidies. With many of the key lifestyle elements – such as education and housing – requiring funding upfront, it is not surprising that residents are borrowing more to meet their commitments.
Though wages increased between 2011 and 2013, salaries are unlikely to keep up with the rising cost of living. The low oil price is leading to slowdowns in recruitment.
Many workers have traditionally seen this region as an attractive and safe place to live and work while bolstering their savings. They now find that the low-tax environment that lured them here is being eroded by the higher cost of living.
Employers are caught in the same complicated picture. This country has acted as a magnet for highly skilled professionals and employers have been able to sell the benefits of the vibrant business culture alongside the enviable lifestyle advantages.
But if that competitive edge is being blunted by rising living costs, it will potentially have a profound impact on the future of our commercial environment – and that is good for neither employers nor their workforce.
The specs
Engine: 2.0-litre 4-cyl, 48V hybrid
Transmission: eight-speed automatic
Power: 325bhp
Torque: 450Nm
Price: Dh289,000
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
IF YOU GO
The flights
FlyDubai flies direct from Dubai to Skopje in five hours from Dh1,314 return including taxes. Hourly buses from Skopje to Ohrid take three hours.
The tours
English-speaking guided tours of Ohrid town and the surrounding area are organised by Cultura 365; these cost €90 (Dh386) for a one-day trip including driver and guide and €100 a day (Dh429) for two people.
The hotels
Villa St Sofija in the old town of Ohrid, twin room from $54 (Dh198) a night.
St Naum Monastery, on the lake 30km south of Ohrid town, has updated its pilgrims' quarters into a modern 3-star hotel, with rooms overlooking the monastery courtyard and lake. Double room from $60 (Dh 220) a night.
Racecard
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The specs
Engine: 2.7-litre 4-cylinder Turbomax
Power: 310hp
Torque: 583Nm
Transmission: 8-speed automatic
Price: From Dh192,500
On sale: Now
SPECS
Engine: Two-litre four-cylinder turbo
Power: 235hp
Torque: 350Nm
Transmission: Nine-speed automatic
Price: From Dh167,500 ($45,000)
On sale: Now
Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now