A significant percentage (47%) of Qatar-based respondents of a survey carried out by National Bonds Corporation claimed their savings were “not at all adequate” for future.
Also, 12% of Qatar-based respondents believed their savings would see them through in future, while a nominal 1% thought their savings were more than adequate for future.
UAE-based National Bonds Corporation revealed the results of its annual National Bonds Savings Index for the GCC, which covered three main factors for saving - financial stability, potential for saving, and the savings environment.
These indicated an “improvement” in the residents’ tendency towards saving in the UAE, Qatar, Oman, Bahrain and Kuwait. Saudi Arabia, on the other hand, revealed a marginal decrease in the total number of savers.
The study covered the three main factors that encourage regular saving and compared the results with the outcomes of the 2012 index.
It shows some 25% of Qatari savers admitted to saving significantly less than in 2012. In contrast, 4% admitted to saving significantly more.
About 10% of the respondents in Qatar said they were saving more than they had planned for - marking a notable increase from last year.The top three factors affecting savers’ selection of savings instruments in Qatar included attractive returns, Shariah compliance and the sound reputation of the provider, in that order.
As a key highlight, the study showed that 89% of the respondents in the GCC states expected financial stability throughout the next six months. A majority of respondents agreed that a significant portion of their expenses were disbursed on foodstuff and house rents.
The study additionally indicated that 20% of the GCC respondents currently saved 11% - 20% of their overall monthly income, while 4% of them saved 51% - 60% of their overall monthly income.
Mohamed Qasim al-Ali, National Bonds CEO, said: “Over the past decade, the GCC economy has witnessed significant financial developments that were influenced in one way or the other by the prevailing global economic landscape. Such macro impact has triggered an urgent need to familiarise institutions and individuals with the shifts in the local economy to ensure a secure financial future. Indeed, we are very proud to be releasing the GCC Savings Index for the third consecutive year.
“The Index has become a benchmark indicator for the GCC’s economy. Additionally, it is considered an important index for finding optimal solutions to the challenges faced by all sectors of the community when it comes to adopting a regular savings habit.”
The National Bonds Savings Index includes the results of a comprehensive annual study of the behaviour and attitudes of as many as 1,707 GCC residents and low-income workers towards saving and spending money.
National Bonds Corporation had launched the initiative with a view to identifying the challenges encountered by all categories and sections of communities, and to provide practical solutions for the development of saving patterns and habits among the people in the GCC countries.