Expats from the west living in the United Arab Emirates are less likely to spend their cash sensibly than their counterparts living in other favourite destinations.
Those living in the UAE are more likely to spend their money on lifestyle choices.
A study by financial firm Standard Life showed 97% of UAE expats opted for a luxury lifestyle, with less than a third (31%) take professional financial advice and only 9% put money into investments.
The firm’s analysts found this a surprise as the UAE is a low-tax jurisdiction where expats traditionally earn high salaries that should leave them with a higher disposable income.
Meanwhile, western expats in Hong Kong and Singapore are far less likely to spend on a luxury lifestyle.
Gold and property
Only 51% of high earners in Singapore and 47% in Hong Kong confessed to living the high life, while around half of all expats in both places sought expert financial advice.
Expats in Hong Kong prefer investing in stocks and shares, but those in Singapore were less keen, with 43% admitting they put their cash into equities.
Other takeaways from the report include:
- 70% of UAE expats invest in mutual funds – higher than Singapore (67%) and Hong Kong (56%)
- Gold is an investment of choice in Singapore (66%) for expats, compared with 56% in Hong Kong and 15% in the UAE
- 78% of Singapore expats have a preference for property investment, against 55% in Hong Kong and 48% in the UAE
The responses came from expats mainly from Britain (70%), Australia, New Zealand, Ireland and France who earned a gross monthly salary of US$6,500 or more.
Spending patterns
Just over half (54%) were aged between 26 and 35, a third (34%) were aged 36 to 45 and the rest were aged between 46 and 60 years old.
“The survey shows that expats still need professional financial advice when they are away from home, as many decide a luxury lifestyle is more important to them than saving for retirement,” said Chris Divito, of Standard Life International Dubai.
“Lifestyle is certainly important, but expats in the Middle East and Far East seem poles apart in their spending and saving habits.
“We conducted the survey to better understand our customers and did not expect to find such wide-ranging results.”
One reason for the variable spending patterns of expats could be the attitude to spending and saving in the place where they move rather than their experiences at home.
