A recent survey reveals that 95% of expatriates in the UAE feel they are in a better or slightly better financial position compared to last year. The 2024 Worldwide Wealth Survey, conducted by international financial advisory firm Hoxton Capital Management, gathered responses from 2,000 expats living in the UAE.
According to a Khaleej Times report, the survey highlights several factors contributing to the improved financial health of expats: 55% attribute it to salary increases, 35% to the performance of their investment portfolios, 30% to property investments, and 20% to a growing pension pot.
Chris Ball, managing partner at Hoxton Capital Management, commented on the findings, stating, “The survey highlights a positive shift in financial sentiment among our international investor audience and particularly among expats living in the UAE. The fact that 95% of respondents from the UAE feel they are in a better financial position than they were a year ago reflects their resilience and adaptability in the face of economic changes. However, the increased cost of living remains a significant concern for those globally who feel worse off financially.”
According to a separate study by Mercer, salaries in the UAE are expected to rise faster than the inflation rate due to increased demand for talent and overall economic growth. When asked about their initial reasons for moving abroad, 85% of UAE respondents cited employment and quality of life.
Regarding financial priorities, 60% of UAE expats aim to build up their savings, 45% want to invest, 40% focus on property transactions, and 25% are already planning for retirement. A smaller group, 5%, prioritizes debt reduction.
The survey also indicates that UAE expats are more proactive in managing their finances: 60% use apps, 45% use spreadsheets, 10% rely on pen and paper, and 5% do not track their finances at all. Additionally, 45% review their investment portfolios weekly or monthly, 10% once a year, and 15% rarely or never.
Interestingly, despite the availability of tech solutions, over half of the UAE respondents still use non-tech methods for tracking their finances. “People haven’t been using tech because there hasn’t been anything that meets their needs,” Ball added.
Globally, only 60% of expats in other territories feel better off financially, highlighting the unique economic advantages experienced by those in the UAE.