National Bonds Corporation survey reveals many in Qatar worry about inadequate savings
In Qatar, 47 percent of the respondents claimed their savings were not at all adequate for the future, and while 12 percent believed their savings would see them through in the future, only one percent thought their savings were more than adequate for the future.
The National Bonds Corporation, a shari’ah compliant savings scheme operating in the UAE recently revealed the results of its annual National Bonds Savings Index for the GCC. The results covered the three main factors for saving - financial stability, potential for saving, and the savings environment - and included findings for Qatar.
The study showed that 89 percent of the respondents in the GCC states expected financial stability throughout the next six months. However, respondents from Qatar expressed concern of higher inflation rates, experienced through higher house rents and grocery bills, a view also held by respondents in both Oman and Bahrain.
Commenting on the results of the GCC Savings Index, Mohammad Qasim Al Ali, CEO of National Bonds, said, “Over the past decade, the GCC economy has witnessed significant financial developments that were influenced in one way or the other by the prevailing global economic landscape. Such macro impact has triggered an urgent need to familiarise institutions and individuals with the shifts in the local economy to ensure a secure financial future.”
According to the survey, 20 percent of GCC respondents currently saved 11 percent to 20 percent of their overall monthly income, while 4 percent of them saved 51 percent to 60 percent of their overall monthly income. A quarter of Qatari savers admitted to saving significantly less than in 2012. In contrast, only four percent admitted to saving significantly more. Property was considered by those in Qatar as the most popular savings instrument. The key priorities for savings according to those surveyed in Qatar were children’s education, retirement and purchase of property for personal use, in that order.