In a world where personal and family needs constantly compete with endless distractions and desires, the significance of saving can sometimes escape notice. While the allure of weekend getaways, new technology, or fashionable attire can be strong, these seemingly minor indulgences have the potential to accumulate over time, creating a vulnerability to unforeseen circumstances. What happens when a medical emergency comes up? Or when a game-changing opportunity arises, but is hindered by financial limitations?
Thankfully, we can now confidently say that the saving culture has taken root in the UAE – and shows no signs of receding. A recent survey reveals that 89 percent of UAE participants have set financial goals for 2024, with top priorities including increasing existing savings, planning for retirement, and allocating funds for children’s education.
Indeed, National Bonds experienced an impressive surge in 2023, with regular investors growing by 122 percent and new customers growing by 215 percent. Although the pandemic accelerated this shift in financial behaviour, the seeds have been planted over years of dedicated efforts.
The crucial intersection of financial education and innovation
A two-fold strategy involving financial education and innovation is fundamental for cultivating a sustainable saving culture. Rather than simply being encouraged to save, UAE citizens and residents alike need to be equipped with the knowledge to make informed financial decisions, from understanding financial products and terminology to budgeting techniques. An inspiring model for raising financial literacy levels throughout the nation is The Young Investor, the first-ever education programme in the Middle East designed to foster financial awareness at an early age.
Saving requires patience, determination, consistency, and commitment to the cause. In some ways, it is among our greatest weapons against uncertainty, fear, and insecurity. But although education paves the way, saving also requires access to the right tools that will make the journey easier, more motivating, and even more rewarding.
National Bonds has emerged as a leader in this field, exemplifying the importance of a pioneering, innovation-focused approach. Consider the company’s mobile app as an example. Through a user-friendly interface, National Bonds offers a comprehensive set of features that enable convenient saving on the go, anytime and anywhere, eliminating traditional barriers. The successful digitisation of the saving and investment experience has resulted in National Bonds gaining 74 percent more customers via the app in 2023.
Still, innovation extends beyond technology. The specialist UAE savings and investment company has developed a diverse portfolio of Sharia-compliant saving and investment solutions, catering to all segments of the country’s vibrant population. Because when it comes to securing one’s future, income should be irrelevant and solutions should be tailored to unique needs.
Attractive loyalty programmes can further incentivise saving, allowing customers to enjoy extra benefits while securing their financial future. For instance, National Bonds gives UAE citizens and residents the chance to win prizes from a massive AED 35.5m rewards pool, making regular saving more engaging, exciting, and fun.
Collective action on multiple fronts delivers results
Aside from individual saving habits, employers can also be instrumental in stimulating financial security for their workforce. Think about the end-of-service benefits, a concept which is commonplace in the UAE. Traditionally, these benefits are handed out in a single payment. Yet, this approach might end up in impulsive spending or trouble managing big sums of money.
Encouraging companies to invest employee end-of-service benefits in modern pension schemes, such as National Bonds’ Golden Pension Plan, presents a win-win opportunity. Especially when 82 percent of UAE employees state they would be open to employers investing their end-of-service benefits.
This forward-thinking approach empowers employees to secure a retirement plan while promoting economic activity within the country. Since these funds are strategically invested and circulated, all sectors of the UAE economy can receive a significant boost that can potentially unlock even greater wealth for the nation as a whole.
The UAE government has long recognised the critical role that retirement planning holds in safeguarding the stability and financial independence of both UAE nationals and residents. Underscoring the need of instilling a saving culture at both the individual and institutional levels, National Bonds works with the government in order to create the necessary funds that will enable employers to enhance the financial wellbeing of their employees.
As we navigate the path towards economic diversification and sustainable growth,The UAE government has long recognised the critical role that retirement planning holds in safeguarding the stability and financial independence of both UAE nationals and residents.
A financially secure population is less vulnerable to debt risks, leading to enhanced overall well-being. This translates into a stronger, more empowered society capable of overcoming economic challenges and investing in future generations.
By prioritising financial literacy initiatives, spearheading innovation across all aspects, and cultivating strong and impactful collaborations between stakeholders, National Bonds remains dedicated to actively supporting the long-term financial security and prosperity of the UAE, its citizens and its residents.