Souqalmal.com survey shows 40% don’t know the difference between flat and reducing rates
The latest Souqalmal.com survey on financial literacy in the UAE shows that over 40 percent of UAE residents don’t know the difference between flat and reducing rate- an important factor when picking a loan right for you. Other findings on personal finance included:
- Specifically among UAE nationals, two out of three admitted to not knowing the difference between flat and reducing rate
- For financial advice, 38 percent of UAE residents turn to their friends and family, 9 percent ask their banks and 7 percent ask their financial advisors
- One in four residents searched the internet for financial advice
UAE expected to save UAE Dhs 9.1 billion from deregulating fuel
During an event in Abu Dhabi, The Minister of Energy, Al Mazroui spoke about the deregulation of fuel subsidies. Such a move is expected to save UAE 9.1 billion dirhams. During his talk Al Mazroui said:
- Money made from savings will be pumped back in to the UAE economy and further build on areas such as health, education and infrastructure
- UAE residents need to conserve more energy as currently there are 3 million cars and 638,000 are four wheel drives, which means they consumer more fuel than other cars
- Higher fuel prices may urge residents to take advantage of public transport and carpooling in order to cut emissions
Credit card spend to decline this year
Head of Retail Banking at Emirates NBD, Suvo Sarkar reveals that spending on credit cards in the UAE is expected to drop this year. In the past three years, there has been an annual growth rate of 20 percent but it is likely to drop to 18 percent. In the UAE cash is still used for 80 percent of retail transactions.
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Are you confident about your investment decisions?
A study conducted by IG Group shows that compared to UAE nationals (44%), Asians (48%), and western expats (45%), 67 percent of Arab expats are confident of making their own investment decisions. Other results of the survey revealed:
- 52% of all UAE residents make their own financial decisions
- Majority of respondents used the internet to make their investment decisions
- Around 64% of respondents are keen to learn more about improving their investment portfolio
Increasing popularity of Islamic Finance
Based on a research conducted by Morgan McKinley, by 2020 the global value of Islamic banking assets is estimated to reach $6.5 trillion. Islamic finance popularity has been increasing as compared to mid-1990s the global value of Islamic banking assets was $150 billion. Among non-Muslim UAE residents, Islamic banking products are attractive due good deals offered by bank and the terms of the finance itself.