Survey finds 94 per cent of UAE residents have financial worries

Single mother finds work, university and raising children hard.

In this series:

■ 75 per cent fail to save enough for retirement

■ Survey finds many UAE residents failing to save for retirement

■ Experts say people must resist urge to splurge

■ Rent is UAE residents' biggest expense, survey finds

■ Some UAE residents own eight credit cards, survey finds

■ UAE residents long for financial security

■ Start saving from early age

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ABU DHABI // Mahra Al Kaabi worries about the future.

As a single mother of two, the Emirati’s responsibilities mean she is only able to save a fraction of her monthly salary.

“I would say about 5 per cent of my salary is saved per month,” says Ms Al Kaabi, 26, who works as an administrator. “I am a single mother of two and have to pay all the bills myself.”

Saving means she often has to do without and she fears for her family’s financial security.

“I worry I will not be able to provide to my children,” says the Abu Dhabi resident. “Sometimes bills accumulate and I have no help.

“I also worry I will not give my children enough things they require, like activities, parties or even toys.”

Most of her money goes on private school fees, a car loan, rent, household items and utilities.

“I also spend a lot on my children’s out-of-school activities, like karate and swimming,” Ms Al Kaabi says. “Of course shopping trips, costing up to Dh700 weekly, and school supplies are also on the list.

“I am also completing my master’s degree and have to pay for it with my own money. That and rent are my main spendings.

“I can’t afford monthly luxury items at the moment but I always make sure to have enough to be able to take my children on trips like RAK, or even travelling every few months, and for a week or so.

“I also treat myself to a spa day every few months.”

Ms Al Kaabi is not alone.

The survey found only 6 per cent of respondents do not have any financial worries.

It also found 79 per cent of respondents were taking action to earn more money, such as a second job (34 per cent), borrowing from banks (28 per cent), and borrowing from friends (26 per cent).

Worrying about money has also taken a mental toll on many.

Fifty-five per cent say they have experienced stress as a result of money worries, while more than a third (35 per cent) have experienced anxiety or depression as a result.

“These are incredibly interesting stats and in short, one of the biggest actions people need to take is to stop living beyond their means,” says Chris Ferguson, chief executive of Credence Independent Advisers based in Dubai.

The first step, Mr Ferguson says, is to build a safety buffer – an amount of cash for absolute emergencies. Then ensure a regular saving is made each payday and spend after that. Leave luxuries until after you have ensured sustainability, he says.

“Ensuring financial security is essential to UAE residents,” says YouGov’s Alaeddine Ghazouani. “The inability to meet this objective can unsurprisingly impact their health and well-being.

“The impact of financial worries can be even more negative when the actions taken to overcome them, such as getting a second job or borrowing money, lead to further health or financial difficulties.”

The survey questioned 718 men and 386 women.

Of the 1,104 people polled, 740 work full-time (30 or more hours a week), 69 part-time (eight to 29 hours a week), and 28 work fewer than eight hours a week.

Of the rest of the respondents, 14 were retired, 90 were full-time homemakers and 56 were unemployed. The remainder of those polled declined to answer.

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About this series:

A study into the saving habits of Emiratis and expatriates found a quarter of all employed residents do not save any of their monthly wage. And 69 per cent have not started planning for retirement. The survey found that only 6 per cent of respondents do not have any financial worries. The majority of people’s wages are spent on rent, followed by groceries and household items leaving some residents dependent on multiple credit cards and longing for financial security. Financial experts advise residents to resist overspending to avoid a struggle when faced with unexpected expenses.

Coverage from March 9th:

■ Majority of expats in UAE sending money abroad, survey finds

■ High cost of living forces half of expats to consider leaving UAE

Coverage from March 10th:

■ UAE workforce is largely satisfied in their jobs

■ Emergency cash reserves needed in case of redundancy, says financial advisor

■ Most UAE employees unhappy with frequency of pay rises, survey shows

■ Many UAE workers fearful over losing their jobs