News
UAE survey reveals consumers’ commitment to financial literacy – News
Most UAE survey respondents are financially aware and have a good estimate of their credit score
Read more…
It was observed that more than two-thirds of UAE residents are financially conscious of their spending, maintain close personal vigilance over their finances and set long-term financial goals and strive to achieve them, a recent survey showed.
Visa’s 2024 Financial Literacy Survey assessed UAE consumers’ financial knowledge and choices in managing credit, savings and spending. Visa’s research gathers insights from men and women aged 18 to 55 in the emirates of Dubai, Abu Dhabi and Sharjah.
According to the survey, more than half of respondents across all age groups are confident about their financial situation. It is observed that a comparable proportion of respondents are financially aware of their spending, maintain close personal surveillance over their finances (68 percent) and set long-term financial goals and strive to achieve them (67 percent). .
Dr. Saeeda Jaffar, Visa Senior Vice President and Group Country Manager for the GCC, said: “As the UAE aims to double the contribution of the digital economy to GDP, at Visa we believe that the responsible use of money It is the basis of a sustainable economy. Our 2024 Financial Literacy Survey shows that 64 percent of UAE respondents feel their financial situation hinders their ability to achieve meaningful goals. So, while we bring solutions like Installments to the UAE, we are pleased to bring our research to the financial literacy conversation and remain committed to supporting the UAE government’s financial education efforts.”
Research has shown that around 75 percent are aware of their credit score and what it means for their financial situation. However, only 33 percent fully understood interest rates. At least 50 percent of respondents claim to be knowledgeable about financial matters. More than half of respondents (all age groups) are confident about their future financial situation.
Thirty-three percent do not want to take out a loan in the immediate future, citing some control over financial expenses and savings. Sixty-five percent say they want to improve their knowledge about savings and investments, followed by 44 percent who want to know more about Budgeting and Financial Planning, and 38 percent who want training in Credit and Debt Management.
Dr. Saeeda Jaffar, Visa Senior Vice President and Group Country Manager for GCC
The survey also assessed the spending, saving and investment habits of UAE consumers. Almost half (48 percent) said they were increasing their bank account balance in the last 12 months. Around 20 percent purchased financial investment products other than pension funds. Forty percent spent little or much less than their income in the last 12 months, while 37 percent of respondents spent as much as their income.
The Visa survey explored feelings about using responsible installments in payments. Among those surveyed, 67% carefully consider affordability before purchasing something. Around 16 percent of respondents currently have an active BNPL (buy now, pay later) plan or have converted a credit card purchase to installments (six percent).
Around 64 percent believe that their financial situation limits their ability to do things that are important and expressed interest in flexible credit solutions that allow responsible use of installments. Interestingly, 52 percent believe that benefits would help them manage their finances better.
Respondents primarily prefer to pay for future electronic devices with a credit card (31 percent), with 9 percent looking for BNPL plans and 4 percent preferring credit card installment plans. While 43 percent of consumers prefer to opt for merchant installment payments for high-value purchases, including electronics or cell phones, many believe installment plans would be beneficial for emergency expenses, including medical bills and urgent car repairs (28 percent ), life events such as weddings or buying a home (29 percent), education (32 percent) or planning a vacation (24 percent).