Approximately 37% of National Bonds Savings Index participants consider UAE for retirement.
Dubai: In the 10th edition of the National Bonds’ annual Savings Index, recently released on Tuesday, they studied that 76 percent of UAE residents view the UAE as their preferred savings destination. This perception is particularly prominent among the younger population, as stated by Mohammed Qasim Al Ali, the CEO of National Bonds. Interestingly, only 16 percent of respondents send their savings back to their home country, while 8 percent consider investing in savings schemes outside their home country.
Furthermore, the survey highlighted that one-third of the participants surveyed expressed the aspiration to retire in the UAE. The survey involved 2,000 respondents living in the UAE and was conducted over the past year.
According to Mohammed Qasim Al Ali, this overwhelming preference for the UAE as a savings and investment destination among 76 percent of the respondents did not surprise, as it is a sentiment founded on substantial reasons.
UAE – the retirement hub
National Bonds, the Shari’a-compliant savings and investment company in the UAE, which the Investment Corporation of Dubai owns, experienced a significant increase in its investments, reaching Dh14 billion this year. The CEO stated that this growth is remarkable, especially compared to the Dh8 billion managed during the pandemic. It indicates a positive and accelerated shift towards a savings culture in the UAE.
Regarding retirement plans, approximately 37 percent of the surveyed audience expressed their hope to retire in the UAE. The CEO mentioned that the country has become a regional attraction for those considering retirement due to new laws and initiatives, such as the Golden and retirement visa schemes. It has made retirement in the UAE more accessible.
Interestingly, only 8% of the surveyed individuals contemplate returning to their home country upon retirement. The CEO attributed this trend partly to the newly introduced job loss insurance scheme, which provides added incentives for people to reside in the UAE during their retirement.
The pandemic has brought significant changes in attitudes toward saving. As many as 84 percent of respondents now recognize the importance of having an emergency fund. The CEO emphasized COVID-19 was a crucial lesson. It reminds people that life can be unpredictable and that financial security is essential.