Covid-19 Impact: 50% UAE Residents Say Savings Have Been Hit

1,000 UAE respondents take part in YouGov survey that was conducted in Nov

A new findings by market research firm YouGov, on behalf of wealth management solutions provider Quilter Cheviot, revealed that the novel coronavirus disease (Covid-19) pandemic has impacted over 50 per cent of UAE residents’ savings, which either dipped appreciably or stopped completely.

The sample size of the survey, which was conducted in November, was 1,000 UAE residents.

“When respondents were asked whether they had been able to save more during the Covid-19 pandemic, only 13 per cent said they were saving more,” said the report.

Around 27 per cent of the respondents said that they had lost their income because of the contagion and another 23 per cent said that their savings were severely impacted due to the viral outbreak.

Brendan Dolan, global distribution director, Quilter Cheviot International, said, “This research highlights how badly the Covid-19 pandemic has impacted people’s saving habit. Millions of people have experienced a fall in income and the economy suffered a huge economic shock when the UAE went into lockdown.

It’s no surprise that more than half of people had to readjust their saving habit to cope up with these unusual and difficult circumstances.”

Around 43 per cent of the respondents, who are aged between 61 and 70, said they had lost their income during the pandemic. A similar trend was seen among 31 per cent of the respondents, who are between 41 and 50 years, and 31 per cent in the age category of 51 and 60 years, the survey’s findings stated.

More women lost their income due to Covid-19

The research also showed that 32 per cent of women respondents lost their income during the Covd-19 pandemic, as compared to 25 per cent of their male counterparts.

Similarly, 34 per cent of those in the lower-income category of Dh5,000 a month said they had lost their means of livelihood during the period, as compared to 14 per cent in the higher-income category of Dh40,000 or more.

11% were able to save ‘more’, despite Covid-19

Around 15 per cent of the respondents said the Covid-19 pandemic did not affect their spending habit and another 11 per cent of them said they had managed to tidy up their savings in the initial days of the viral outbreak.

Mark Leale, the head of Quilter Cheviot’s Dubai operations, said, “We often think about the immediate effect that events may have on our lives. However, it is the long-term consequences that can impact us most. For example, the impact of Covid-19 on the population’s ability or willingness to save.”

He added: “This addresses a short-term situation but a prolonged reduction in savings will lead to a lower accrued capital for its intended future use, whether providing for retirement or otherwise.”

Content retrieved from:https://www.khaleejtimes.com/coronavirus-pandemic/covid-19-impact-50-uae-residents-say-savings-have-been-hit

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