Majority of UAE consumers have financial awareness and a significant portion of them regularly keep a close eye on their finances, a new survey showed.
According to Visa’s 2024 Financial Literacy Survey, which assessed financial knowledge and choices of consumers in the UAE in managing credit, savings and spending, 75 percent of the respondents are financially aware and have a good estimate of their credit score. Moreover, a comparable proportion of respondents are observed to be financially conscious of their spending, keeping a close personal watch on their finances (68 percent), and setting long-term financial goals and striving to achieve them (67 percent).
In fact, at least 50 percent of respondents claim to be knowledgeable about financial matters, the survey showed.
“As the UAE sets its sights on doubling the digital economy’s contribution of GDP, at Visa, we believe responsible money usage is the foundation of a sustainable economy. Our 2024 Financial Literacy Survey shows 64 percent of UAE respondents feel their financial situation hinders their ability to accomplish significant goals. So, while we’re bringing solutions like Instalments to the UAE, we are delighted to bring our research to the conversation around financial literacy and remain committed to supporting the UAE government’s financial education efforts,” said Dr. Saeeda Jaffar, Visa’s SVP and Group Country Manager for GCC.
Savings and investments
According to the survey, nearly half (48 percent) respondents stated they were building up their bank account balance over the past 12 months.
Looking at investment appetite, around 20 percent bought financial investment products other than pension funds.
Spending habits
Meanwhile, 40 percent spent little or much less than their income over the last 12 months, while 37 percent of respondents spent as much as their incomes.
Moreover, 33 percent do not want to take a loan in the immediate future, claiming some control over financial expenditures and savings.
Among respondents, 67 percent carefully consider affordability before buying something. Around 16 percent respondents have a buy-now-pay-later plan active currently or have converted a purchase on their credit card to an installment (6 percent).
Around 64 percent believe their financial situation limits their ability to do things that are important, and expressed interest in flexible credit solutions that would enable responsible usage of installments. Interestingly, 52 percent believe that installments would help manage finances better.
While 43 percent of consumers prefer to choose installment payment from merchants for high-value purchases including electronics or mobile phones, many believe installment plans would be beneficial for emergency expenses including medical bills and urgent car repair (28 percent), life events such as weddings or purchase of a home (29 percent), education (32 percent), or holiday planning (24 percent).
Need for broader financial knowledge
According to the survey, while majority of the respondents did have financial awareness, only 33 percent respondents fully understood interest rates, while 65 percent stated they want to improve their knowledge of savings and investments. Moreover, 44 percent of the respondents want to know more about budgeting and financial planning, while 38 percent want an education on credit and debt management.
The survey gathered insights from men and women aged between 18-55 years in the emirates of Dubai, Abu Dhabi, and Sharjah.
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