Today's Edition
MAYS IBRAHIM (ABU DHABI)
Ninety-seven percent of UAE expatriates say living in the country has brought their financial freedom forward by at least five years, according to a new survey by St James’ Place Middle East. Almost all (98%) also say it will help them retire earlier, with seven in 10 anticipating retirement at least three years sooner.
The report, titled “Money on the Move”, shows that 64% of respondents believe they would have taken at least five years longer to achieve financial freedom if they had never lived overseas.
The findings point to higher earnings and higher savings as key drivers. Ninety-six percent of respondents say they earn more in the UAE than in their home countries and 97% say they save more each month.
The financial gains are prompting many expatriates to extend their stays. Some 55% said they have remained overseas longer than originally expected, while 78% expect to live abroad for at least eight years.
Although 59% expect to eventually return home, they don’t plan to do so until retirement.
For UAE resident Janelle Nuyts, the country was supposed to be another stop in an already international life. The Belgian national spent almost 10 years living and working in Shanghai before moving to the UAE three and a half years ago.
“What has surprised me most about Dubai is how easy it is to build a life here and how quickly it can start to feel like home.” Nuyts, who works in the education sector, told Aletihad.
The city’s international professional opportunities and international community have been a big part of her decision to stay.
“There’s a strong sense that you can reinvent yourself, develop your career and build something here.”
Nuyts added that living in the UAE has given her more room to think beyond immediate bills and plan for the future.
“I’ve become much more conscious of saving, investing and making sure that the lifestyle we enjoy today doesn’t come at the expense of our longer-term goals.”
Taxation policies, residency and visa rules, and access to education and healthcare were each cited by 92% of respondents as factors influencing their choice of where to live.
In an interview with Aletihad, James, who relocated to Abu Dhabi from Manchester in 2020, said the move has changed the way he thinks about his finances, including how much of his income he’s able to keep.
“I’ve been able to put money towards things I probably would have taken much longer to do back home. I’m not just working towards the next pay cheque anymore,” he said, noting that the UAE’s tax environment was a major draw.
“I’m thinking about investments, having a bit of a safety net and being in a position where I have options later on. That’s probably the biggest difference for me.”
The report also found that 89% believe seeking financial advice earlier would have improved their investment returns and savings.
Respondents estimated that earlier advice could have helped them avoid an average of $56,410 in missed financial opportunities.
“It is very easy to get caught up in the lifestyle here and spend everything you earn,” Nuyts said. “Working with a financial planner and properly understanding budgeting, saving and long-term financial goals can make a big difference.”
The report’s findings are based on a double-blind online survey of 450 residents in the UAE who have lived and worked in multiple jurisdictions and have multi-jurisdictional wealth management considerations.
