UAE Ranks High Amongst British Expatriates
A study just completed by Standard Life, has revealed that almost four in every five expatriates including British expatriates in UAE have rated the middle-eastern nation as one of the best. The decision was centred around factors such as the opportunities that lay in wait, which is a huge motivation when moving countries.
There are obvious drawbacks for British expatriates in UAE, that level out the benefits. Deep pockets are required for luxuries, after all the United Arab Emirates has a reputation of doing things in a very grand style. Standard Life did find that those living in this wealthy country were also committing their finances to investments.
One very big perk for those employed British expatriates in the UAE, has been that salary earned escapes any taxation. Chris Divito, CEO of Standard Life International Limited, said: “A tax free income provides a great opportunity which may lead to relatively higher savings”. Going on to say that it provides opportunity for expats to set more money away on a more frequent basis.
The study did reveal that there was a discrepancy in the saving patterns of those in the United Arab Emirates, who have a more secure and stable future. Compared to those in Hong Kong and Singapore, who are able to save much more money.
Expats had no real plans to leave
Figures from the study showed that approximately 97% of western expats were utilising some of their disposable income on enjoying a luxurious lifestyle. But 94% were using much of the disposable portion of their hard earned salary on investments. Divito said: “With an increasing number of UAE western expats paying off their financial liabilities, it is leading to greater strain on their long-term savings and investments.”
Looking at the breakdown of the income used on investments, 56% is spent on real estate. This includes mortgage payments and rent, with 51% using this portion of their earnings on loans. The remaining disposable income is attributed to the education of children, health, and all other household expenses.
Interestingly it was also found that 61% of western expats in the arab nation had no fixed plans about returning to their home countries. The decision to return home would be dependent on employment opportunities, and whether or not enough money had been set aside for their golden years.