‘Don’t live beyond your means’, top UAE Indian businessman warns

Firoz Merchant, 57, the founder and chairman of Pure Gold Jewellers, has said some of the people could easily have avoided their problems by not using credit cards.

Firoz Merchant, chief and owner of Pure Gold in Dubai, regularly settles arrears of jailed debtors. Sarah Dea/ The National

DUBAI // The Indian businessman who settled a Dh76,000 debt of his jailed countrymen has warned of the dangers of living beyond one’s means.

Firoz Merchant, 57, founder and chairman of Pure Gold Jewellers, said the situation could have been easily avoided by refraining from using credit cards.

“Do not rely on plastic,” he said. “Many people are enticed to spend more than they can due to this. It is a poison.

“Do not live beyond your means, always save for a rainy day.”

The prisoners had appealed to their country’s consulate general for help.

They included the owner of a construction company who had issued cheques that bounced, and a young man who took out a loan to buy a grocery business, but lost his job and could not meet the repayments.

Anurag Bhushan, consul general of India, said he appreciated Mr Merchant’s support.

“We were moved by the stories of these prisoners who were victims of unfortunate circumstances,” he said. “Along with them, their families also had to suffer as they were unable to clear the debts.”

Over the years, Mr Merchant has settled more than Dh5.5 million in fines and debts for more than 4,500 prisoners of various nationalities.

This year, he paid Dh1.1m for the release of about 1,000 inmates who had finished their sentences but could not pay their fine.

He makes these payments through Government agencies or the prisoners’ embassies.

While he warned about overspending, he believed “everyone deserves a second chance, no matter what their nationality”.

“The concerned prison departments send us their list of selected prisoners who could benefit from our programmes and we go by what they say,” he said.

Mr Merchant said the Indian, Pakistani, Bangladeshi and Nepali embassies had expressed concern about their citizens who were jailed for debts.

“They are all doing their best but they also need support from private sector and generous donors to help resolve debt cases.”

Mr Merchant started his gold business in 1980. It is now worth more than US$1 billion (Dh3.67bn) and has provided jobs to about 5,000 people in the Gulf region and India.