A growing number of employees in the UAE are seeking savings and investment schemes as part of their benefits package, highlighting the rising demand for employer support in financial planning. A recent report underscores the importance of financial empowerment through literacy in the workplace.
Zubair Siddiqi, Head of Marketing Management at Zurich Middle East, stressed that workplace financial empowerment has now become essential. “There’s a growing need for workplace savings and investment opportunities, starting from the UAE and moving across the region. The message is very clear: financial empowerment and financial literacy isn’t just a perk anymore. It’s actually a necessity.”
The Future of Work 2024 report, commissioned by Zurich International Life, surveyed 2,000 employees and 2,000 employers across the UAE, Saudi Arabia, Qatar, and Bahrain. One key finding revealed that the majority of employees desire workplace savings plans as part of their benefits package.
Financial advisor and director of Barjeel Geojit Securities, KV Shamsuddeen, was unsurprised by the findings. “I have been in the UAE for 51 years helping lower-income expats save and invest for the future, and it will be surprising for many how few people are financially literate,” he said. “Many either send their money back home or spend irresponsibly. However, the younger generation is focused on saving and investing, demanding that their companies support them in this growth journey.”
Workplace Savings Plan
The report highlighted a significant gap in workplace and retirement savings in the UAE, with 31 per cent of employees stating they do not receive this benefit but would like to.
Ashika Tailor, Head of Business Development for Employee Benefits at Zurich Middle East, said that workplace savings plans are an effective way to help employees secure their financial futures. “It is the norm for many employees to not have much exposure to financial literacy,” she said. “So, it is very important that companies take it upon themselves to offer that kind of support. The workplace savings plan is becoming increasingly popular in the region, driven by some of the regulatory reforms we’re seeing in the UAE.”
Last year, the UAE introduced an optional end-of-service scheme, allowing employers to invest gratuity funds in various savings schemes supervised by the Securities and Commodities Authority, in coordination with the Ministry of Human Resources and Emiratisation.
Ashika also emphasized the role of companies in promoting financial literacy. “It is closely linked to financial well-being assistance, so providing access to financial education in some way is a great move,” she noted. “There are some quite innovative ways to do that now through digital platforms, and it doesn’t necessarily have to be one-on-one advice.”
The report also indicated that Emiratis, in particular, are seeking more guidance on financial planning, savings, and investment opportunities compared to others in the market.
Saving Hack
Shamsuddeen advised expats to start saving as early as possible. “Many people tell me they earn less and cannot afford to save. I tell those living here alone to save at least 30 per cent of their salaries, and those with families to set aside at least 20 per cent of their income.”
He also shared a useful tip for cutting unnecessary expenses: “I always ask clients to write down their daily expenses in three columns: essential, optional, and wasted expenses. Once they start doing this for a month, their subconscious mind begins to evaluate their spending before making purchases. It’s crucial to remember that savings shouldn’t be what’s left over after spending; it should be the first thing set aside when salaries come in.”
