First Standard Life Western Expatriate Wealth Study says 78% choose the Emirates as most ideal place.
Tax-free salary is one of the key attractions of the UAE for most Western expatriates who also see the Emirates as an ideal place to live, work and save, according to the first Standard Life Western Expatriate Wealth Study.
“Financial stability is the driving force for westerners to leave their home country and become an expatriate,” said the study report.
The study looked into the saving, spending and investment behaviour of approximately 200 Western expats across the UAE of which, 78 per cent choose the Emirates as the most ideal place to live, providing the best opportunities.
“To put this into context with the first batch of the Western Expat survey results from Standard Life, the UAE respondents, compared to Hong Kong and Singapore, were found to save less. However when observed in isolation, UAE western expats seem to have a stable financial future,” the study.
Another recent study ranked the UAE as the third most popular destination for British expats, ahead of France and Spain.
A NatWest International Personal Banking Quality of Life Report revealed that career opportunities and a better quality of life are major attractions for British expats heading to the UAE. “However only eight per cent of those surveyed for the report said that they will be considering a permanent stay in the UAE while 92 per cent said that they were on a “temporary assignment.”
“Many western expats in the UAE come to live here because of the countless opportunities that this country has to offer, of which one of the biggest benefits is the tax free salary,” said Chris Divito, CEO, Standard Life International Limited (DIFC Branch). A tax-free income provides a great opportunity that may lead to relatively higher savings and in turn allow expats to save more on a regular basis. “We believe our research offers consumers a glimpse into their various savings and spending habits and creates an opportunity to revisit any financial issues they may have,” said Divito.
According to Dave Isley, head of NatWest International Personal Banking, the most notable shifts in their quality of life results this year was the rise of the UAE as an expat destination. The attractiveness of once popular traditional expat destinations of France, Spain and Portugal are diminishing, with quality of life drastically reducing for expats living there, making way for newcomers such as the UAE and Singapore.
The NatWest report found that 96 per cent of those living in the UAE, Hong Kong, China and Singapore enjoy larger disposable incomes on a temporary basis. According to Standard Life, with 97 per cent of the UAE-based western expats spending some of their disposable income on luxurious lifestyle choices, there seems to be an overlap, as 94 per cent also spend the bulk of their disposable income on savings and investments.
In addition, the study shows that 56 per cent are spent on real estate, which includes rent or mortgage payments and 51 per cent on their loans. This is followed by children’s education, health related expenses and monthly miscellaneous household expenses.
Divito said with an increasing number of the UAE’s Western expats paying off their financial liabilities, it is leading to greater strain on their long-term savings and investments. “Financial stability is a key priority for expats, and it drives them to plan for their future but at the same time our research has found that spending on non-essential luxury items is also a priority for consumers,” he said. — issacjohn@khaleejtimes.com
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