A recent survey by online finance group Souqalmal and Jeddah-based wealth management firm SEDCO Holdings revealed that around 45 % of people living in Saudi Arabia do not save any money from their monthly income, with 60 % blaming their low income for their failure to save. The survey included 2,000 Saudi and expat respondents living in the kingdom.
According to the research 83 % of respondents have no long term investment plans. In fact just about 17 % save less than 5 % while 38 % save more than 6 %.
The research was done after the Ministry of Housing requested Saudis to save for a deposit on their future home. Amr Banana, SEDCO executive even advised some ways by which the residents can start saving. According to him ways in which residents can save include properly managing finances, reducing needless expenses and opting for appropriate saving and investment opportunities.
According to official statistics since 2014 the average levels of income have risen 13 % in the private sector as opposed to 6 % in the public with inflation rising 7.6 % between 2014 and 2016. Although , inflation fell to near zero last year, it increases again at the start of 2018 due to the introduction of value added tax (VAT), with consumer prices rising 2.7 % in February, marginally down from 3 % in January.
Ambareen Musa, founder and CEO of Souqamal said, “Saving and investment should go hand in hand. Start with a monthly budget and figure out what your basic necessities are that you can save every month.”
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