UAE: 95% of expats feel financially better in 2024
As many as 95 percent of expats in the UAE feel they're in a better or slightly better financial situation than they were a year ago, according to a recent survey.
More than half – 55 percent – of expats attribute improvement in their financial health to salary increases, 35 percent to the performance of their investment portfolios, 30 percent to property investments, and 20 per cent to their growing pension pot.
Top line findings:
These are the top-line findings from the annual 2024 Worldwide Wealth Survey conducted by international financial advisory firm, Hoxton Capital Management, which saw responses from 2000 expats living in the UAE.
According to human capital consultancy Mercer’s study released this year, salaries are projected to increase faster than the inflation rate hike on the back of increased demand for talent and overall growth in the economy.
When asked why they had initially moved abroad, 85 percent of respondents from the UAE cited employment and quality of life as their primary reasons, Hoxton Capital said.
“The survey highlights a positive shift in financial sentiment among our international investor audience and particularly among expats living in the UAE. The fact that 95 per cent of respondents from the UAE feel they are in a better financial position than they were a year ago, reflects their resilience and adaptability in the face of economic changes. However, the increased cost of living remains a significant concern for those globally who feel worse off financially,” said Chris Ball, managing partner at Hoxton Capital Management.
When asked about their financial priorities, 60 percent of UAE expats said building up their savings is their priority while 45 percent want to invest. Meanwhile, 40 percent of the expats wish to focus on buying or selling property. In the UAE, it's never too early to plan for one's retirement as 25 per cent of the expats are already planning for it. However, the 5 per cent will prioritize their debt reduction.
The study found that compared to 95 per cent expats in UAE, only 60 percent of expats living in other territories around the world feel better off.
When asked how often they reviewed their investment portfolios, nearly half – 45 per cent – said they reviewed them weekly or monthly; 10 percent once a year, and 15 per cent rarely or never.
In terms of tracking and managing their finances, 60 per cent in the UAE said they used apps compared to 46 percent globally, 45 percent used spreadsheets, 10 percent used pen and paper, whilst 5 percent said they didn't track or manage their finances at all. Nearly a third – 30 percent – of expats in the UAE said they didn't currently have a relationship with a financial adviser or planner.
“But more than half of people surveyed from the UAE said that they still use non-tech solutions for tracking their finances, which was particularly interesting. People haven't been using tech, we suspect, because until now there hasn't been anything out there that does what they need it to," he added.
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