DOHA: A 2013 GCC Savings Index, compiled by the UAE-based National Bonds Corporation, indicates a large number of people in Qatar believe their savings were not at all adequate for the future. A considerable number of people in Qatar also admitted to saving significantly less than in 2012.
The National Bonds’ Savings Index that covered three main factors for saving — financial stability, potential for saving, and the savings environment —however, indicated an improvement in the residents’ tendency towards saving in the Qatar, UAE, Oman, Bahrain and Kuwait. Saudi Arabia, on the other hand, revealed a marginal decrease in the total number of savers.
The Annual Savings Index revealed that in Qatar, 47 percent of the respondents claimed their savings were not sufficient for the future, while 12 percent believed their savings would see them through in the future, and a nominal 1 percent thought their savings were more than adequate for the future.
25 percent of Qatari savers admitted to saving significantly less than in 2012. In contrast, 4 percent admitted to saving significantly more. Ten percent of the respondents in Qatar stated they were saving more than they had planned for — marking a notable increase from last year.
The top three factors affecting savers’ selection of savings instruments in Qatar included attractive returns, Shariah compliance and the sound reputation of the provider.
The current year’s results showed a mix of opinions among respondents in the GCC countries in terms of their priorities in establishing a regular savings plan.
A consensus indicated that children’s education that ranked first in Qatar, UAE, Oman and Kuwait and retirement, ranked first in Bahrain, were two of the most prominent three reasons for saving in the six GCC countries. As for the residents of Saudi Arabia, real estate purchasing was mentioned as the primary reason for saving for the third consecutive year.
The study indicated that 20 percent of the GCC respondents currently saved 11 percent — 20 percent of their overall monthly income, while 4 percent of them saved 51 percent — 60 percent of their overall monthly income. A large number of people in the GCC states believe that a significant portion of their income were spent on food and house rents.
Commenting on the results of the GCC Savings Index, Mohammad Qasim Al Ali, CEO of National Bonds, said:”Over the past decade, the GCC economy has witnessed significant financial developments that were influenced in one way or the other by the prevailing global economic landscape. Such macro impact has triggered an urgent need to familiarise institutions and individuals with the shifts in the local economy to ensure a secure financial future. Indeed, we are very proud to be releasing the GCC Savings Index for the third consecutive year.
“The Index has become a benchmark indicator for the GCC’s economy. Additionally, it is considered an important index for finding optimal solutions to the challenges faced by all sectors of the community when it comes to adopting a regular savings habit.”
The National Bonds Savings Index includes the results of a comprehensive annual study of the behaviour and attitudes of more than 1,707 GCC residents and low-income workers towards saving and spending money.
The Peninsula
