Expats consider the United Arab Emirates as their favourite destination for living and working, according to research by a leading financial firm.
Money is the main driver for expats when they relocate, says the wealth study by Standard Life.
And expats give the thumbs up to the UAE as –
- 78% see the UAE as the ideal expatriate location
- 90% realise the tax implications of having money offshore when returning home
- 94% actively invest or save while living in the UAE
- 97% spend some disposable income on luxury lifestyle choices
According to the bank, the wealth study looks at the financial affairs of western expats in the UAE, Hong Kong and Singapore, with the result expats in the UAE have a more stable financial future.
Luxury lifestyle
Standard Life International CEO Chris Divito explained tax-free salaries in the UAE are one of the main lures for expats.
“The nation can offer expats many opportunities, but paying no tax on income is a big draw,” he said.
“Picking up a salary without paying income tax can lead to expats saving much more as they have a higher disposable income. Our research highlights expat saving and spending habits and lets them pinpoint how to manage their finances better.”
Besides spending on savings and luxury lifestyles, the research found the next highest level of spending by western expats was on rents or mortgages (56%), borrowing (51%) followed by school or university fees, health and day-to-day living costs.
“Western expats are paying off their debt, which is leaving them less to save in the short term. Although our research shows a financially secure future is a priority for them, so is spending on luxuries that are not essential,” said Divito.
Retirement plans
The report also shows that many expats have no long-term plans about whether they will remain in the UAE or return home.
Expats tend to make these decisions on the fly, depending on job options, how much savings they have and where they feel the best place to retire may be.
Three out of four expats consider they have enough retirement savings wherever they decide to retire.
A third are wary of taking financial advice from banks and independent financial advisors, even though as an expat, cross-border residency issues can affect their tax status, which could reflect on the amount of savings they have mustered.
Standard Life’s wealth report is based on interviews with more than 200 western expats based in the UAE.
