There are few places on earth where you’ll find as many millionaires concentrated in one place as Qatar.
For every 1,000 households in Qatar, some 175 have private wealth of at least one million dollars according to Boston Consulting Group’s 2013 report on global wealth management.
If you live in Qatar, your neighbours may very well rank among the 300 “ultra-net high worth” people worth $30 million or more, according to the World Ultra Wealth Report 2012-2013. No less than 12 people are billionaires.
The numbers are staggering and Qatar’s rapid population increase — set to reach 2.5 million by 2016 — is testament to the country’s economic growth. But despite the concentration of wealth and tax-free salaries, many expats are finding that inflation and the rising costs of living make monthly savings quite a challenge. Rent, schooling, bills and the temptation to indulge in luxurious lifestyle impact everyone’s ability to save for the future.
However, each month there are a growing number of expatriates and locals who’ve saved wisely and increased their chances of joining that elite club of millionaires.
Michael George Gasan was one such person. This year he became an instant QAR millionaire by participating in a ‘save and win’ initiative offered by his bank in Qatar.
“I liked the idea of being able to save money with the chance of winning extra returns on my investment without any risk. I’m fortunate to have struck lucky twice,’ said Michael, who became an overnight millionaire on January 4 this year.
“I’d won prize money in the MashreqMillionaire saving scheme before, so I decided to reinvest my winnings in future success. I never expected to win a million riyals and it was such a lovely surprise which happened on my 25th wedding anniversary. I can now plan and enjoy my retirement with financial peace of mind. Naturally, I have reinvested some of my winnings with the hope of being lucky for a third time.”
Niranjan Mendonca is responsible for MashreqMillionaire one of the region’s longest running save and win initiatives, which to date has made over 250 millionaires in the region.
As head of retail banking at Mashreq Qatar, Mendonca notes that savers in the Middle East are well placed to benefit from schemes that offer customers the opportunity to win cash prizes when they invest in fully encashable saving certificates.
“Anyone with QR1000 or more to save can invest in a certificate which enters them into the draw, which is regulated by the Central Bank. This year alone some 18 savers from Qatar have prospered and won cash sums ranging from QR5000 to 1,000,000.”
Gil Moreno Monserate was one of four winners of QR100,000, having purchased save and win certificates since December last year. “I was the only one among my family and friends who believed that I can win. However that changed after I won and needless to say my family all rushed to purchase savings certificates ahead of the next draw.”
For some customers, even a minor windfall can provide a welcome boost to their personal finances. In September, three customers from Qatar won QR5,000 each, while the highly anticipated one million prize will be drawn this month.
“World Savings Day on 31st October is a timely reminder of the importance of saving for a rainy day. What’s encouraging is that we’re seeing more and more young people take a smart approach to managing their money and it is great here in Qatar that organisations such as INJAZ Qatar are focusing on building financial literacy skills among young people. It’s never too early to start saving,” Mendonca adds.
The World Savings Day has been a regular event since 1924, when the World Savings Banks Institute was created with the objective to stress the importance of savings for modern economies and for individuals alike.
Commenting on the need to balance a savings portfolio as part of a responsible approach to personal financial management, Mendonca notes: “Save and win schemes that offer ‘the luck of the draw’ rewards also provide useful benefits such as credit cards and no salary transfer requirement, although it’s important to remember there is no interest gained on these accounts.
“Traditional savings accounts which offer guaranteed returns on deposits continue to be a significant part of many people’s saving strategies. Indeed, some people like to have a mixture of savings accounts which provide a balance of guaranteed and speculative returns. We hope that by highlighting the importance of responsible financial management on World Savings Day, we can encourage people to think about the wide variety of savings options available — who knows, one lucky investment in a
savings certificate could open the doors to joining Doha’s millionaire’s club.”
