According to a recent survey, 95 per cent of expats in the UAE feel they are in a better or slightly better financial situation compared to a year ago. The improvement in financial health is attributed to salary increases, investment portfolio performance, property investments, and growing pension pots. The survey was conducted by international financial firm Hoxton Capital Management and gathered responses from 2000 expats living in the UAE. Salaries in the UAE are projected to increase faster than the inflation rate hike due to increased demand for talent and overall economic growth.
Primary reasons cited by expats for moving abroad include employment opportunities and quality of life. Financial priorities for UAE expats include building up savings, investing, buying or selling property, and planning for retirement. Compared to expats in other territories, a higher percentage of expats in the UAE feel better off financially. When it comes to reviewing investment portfolios, nearly half of UAE expats review them weekly or monthly, while a significant percentage use apps to track and manage their finances.
It is worth noting that more than half of people surveyed from the UAE still use non-tech solutions for tracking their finances, despite the high usage of apps for financial management. This may be attributed to a lack of suitable tech solutions that fulfill expats’ needs. Financial advisers or planners are not utilized by a third of expats in the UAE, indicating room for improvement in financial planning and management. The positive financial sentiment among expats in the UAE reflects their adaptability and resilience in the face of economic changes. However, the increased cost of living remains a concern for those globally who feel worse off financially.
According to the 2024 Worldwide Wealth Survey, the majority of expats in the UAE prioritize savings, investments, and property transactions. Retirement planning is also a significant focus for expats, with a quarter of them already planning for their post-work years. The study shows that UAE expats are proactive in managing their finances, with a majority using apps and spreadsheets for tracking purposes. The overall financial well-being of expats in the UAE seems to be on an upward trajectory, with a higher percentage feeling financially stable compared to expats in other regions.
In conclusion, the financial outlook for expats in the UAE appears positive, with a significant majority reporting improved financial situations compared to the previous year. The survey findings shed light on the importance of strategic financial planning, investment diversity, and savings accumulation among expat communities. While there is room for improvement in utilizing technology for financial management and seeking professional advice, the overall financial health of expats in the UAE is promising. Continued economic growth, increased demand for talent, and salary increments are contributing factors to the positive financial sentiments among UAE expats.
