Over 50% of UAE residents 'spend more than they earn'

Gulf Today, Staff Reporter

A recently issued Financial Health Report for 2024 by Yabi, a leading financial technology platform in the UAE, shows that over half of individuals in the UAE & KSA region, at 50.46%, reported spending more money than they earned in the past year.

While 63.91% of the population reported being able to pay their bills on time, there remains a clear gap in financial preparedness, as 50.2% of respondents could only cover expenses for two weeks or less without income, highlighting the need for improved financial education and budgeting skills.

According to the company’s Financial Health Report 2024, nearly 41% of the population have little to no confidence in meeting their long-term financial goals, revealing significant uncertainty in financial planning for the future. Furthermore, only 33.53% of the population are confident they will have enough money for retirement, suggesting that the majority are not financially prepared for their later years.

Newly appointed Yabi CEO Rakhil Fernando commented, "It’s alarming that 50.46% of the population are spending more than they earn. This reveals a pressing need to offer insightful financial literacy tools. According to the Financial Health Report, 29.05% of respondents are prioritising budgeting and saving, followed by debt repayment and major life events like marriage or purchasing a car.”