Expatriates in the United Arab Emirates: better off financially in 2024
Expatriates living in the United Arab Emirates (UAE) feel a a marked improvement in their financial situation. According to a recent survey, 95 % of them say they are in a better or slightly better financial situation than they were a year ago. This article explores the main reasons behind this satisfaction and how expats manage their finances to ensure a long-term economic stability.
Key factors behind the financial improvement
Salary and income
The majority of expatriates surveyed attribute their improved financial well-being to a pay rise. In fact, 55 % of the respondents benefited from pay rises over the past year. The main attraction of the UAE remains the job opportunities and a better quality of life.
A range of investments
In addition to pay rises, 35 % saw an improvement thanks to the performance of their investment portfolios, whilst 30 % cite property investments as a key factor. These diversified strategies play a crucial role in building personal financial strength.
Savings and pension pot
Other factors, such as the establishment of a solid savings (60 1Q3Q) and the growth of their pension fund (20 %) also contribute to this sense of financial security amongst expatriates.
Financial objectives of expatriates
Increased savings
For the majority of expatriates, increase savings is a top priority. 60 % of them make it a point of honour to build up their savings, thereby ensuring a financial stability for the future.
Ongoing investment
As for investment, 45 % of expatriates wish to continue investing, seeking to capitalise on the various options available on the local and global markets.
Personal finance management
Use of apps and digital tools
The survey reveals strong uptake of technology for financial management. 60 % of expatriates use apps to track their spending and manage their budgets, compared with 46 % worldwide. Furthermore, 45 % make use of spreadsheets, thereby demonstrating a significant uptake of digital tools.
- 60 % use apps to manage their finances.
- 45 % students use spreadsheets.
- 10 % prefer to use pen and paper.
Lack of financial monitoring
A small percentage (5 %) do not keep track of their finances at all, which may present long-term risks. The proactive financial management is essential for maintaining and improving overall financial health.
Global context and comparison
Comparison with other expatriates worldwide
When these figures are compared with those for expatriates living elsewhere in the world, it is clear that those in the UAE feel significantly better off financially. Only 60 % of expatriates globally share this feeling of financial wellbeing, highlighting the UAE’s unique appeal to expatriate workers.
Impact of economic competition
The resilience and adaptability of expatriates in the UAE in the face of economic changes are evident. Local efforts to support the small businesses, as well as the emphasis on care services for the elderly and the foreign investment in the food and drink sector, have all contributed to this positive momentum.
All in all, the UAE offers a an environment conducive to financial prosperity expatriates. Whether through pay rises, effective investments or the sensible use of technology for managing their personal finances, expatriates find many reasons to feel financial security. The diversity of the strategies employed reflects not only their adaptability but also the unique opportunities available in the UAE.
