Saudi Arabia ranks high in savings index survey

 A 2016 Savings Index survey conducted by National Bonds Corporation showed that the UAE has the highest percentage of regular savers followed by Saudi Arabia.
Conducted by Amman-based Sondos Market Research, the survey aimed to gain feedback from respondents on three key areas — financial stability, saving potential and the existence of an enabling saving environment in their respective countries.
According to the results, 50 percent of respondents in Saudi Arabia and 55 percent in Bahrain, Kuwait and Oman are the sole earners in their families, while 44 percent across the board partially contribute to their household income.
The survey revealed that 25 percent of the respondents in Saudi Arabia saved regularly in 2016, with 88 percent managing to put money aside every month. As for the rest of the surveyed countries in the Gulf Cooperation Council (GCC), 27 percent of respondents saved regularly, with 90 percent saving monthly. Among the rest, 64 percent in Saudi Arabia and 58 percent in the other GCC countries saved whenever possible.
“The National Bonds Savings Index is a significant indicator of the economic pulse of each country,” said Mohammed Qasim Al-Ali, CEO of National Bonds Corporation.
The results indicated that 74 percent of survey participants in Saudi Arabia and 63 percent in Bahrain, Kuwait and Oman believed they lacked sufficient savings for the future. Forty-five percent of the respondents in Saudi Arabia and 55 percent in the rest of the participating GCC countries aim to increase their savings by 5 to 15 percent. Furthermore, 44 percent in Saudi Arabia and 29 percent in other GCC countries plan to save 16 to 30 percent more this year.
The index also showed that 30 percent of the respondents in Saudi Arabia and 22 percent in the rest of the GCC countries did not encounter any contingencies that changed their saving plans in 2016.
The survey highlighted some factors that prevented non-savers from setting aside part of their income. Twenty-nine percent in Saudi Arabia blamed the cost of living, 21 percent blamed loan payments, and 29 percent admitted it was due to a lack of knowledge of financial planning. As for respondents from the rest of the participating GCC countries, the majority — 59 percent — said the high cost of living made it impossible for them to save in 2016, and 18 percent cited loan payment obligations as the reason.
“In the future, we hope to see schools include financial planning in their curricula and educate youngsters on responsible financial behavior to equip the new generation with the ability to manage their finances effectively while contributing to the development of the nation,” said Al-Ali.
According to the survey findings, 56 percent of those surveyed in Saudi Arabia foresee a financially stable future, and 39 percent expect a higher income.
The results show 61 percent of the savers in Saudi Arabia and 52 percent in the other GCC countries plan to increase their savings in 2017. Among non-savers, 48 percent in Saudi Arabia and 39 percent in other GCC countries intend to start saving.

Source: Arab News