According to the research carried out by the National Bonds Corp in Dubai, the National Bonds GCC Savings Index shows that the Gulf states are facing a “crisis” over the lack of savings culture among the citizens. This is mainly because of a lack of financial education and awareness about the importance of savings.
Here are the results for Kuwait:
- 11% of Kuwait citizens believe their savings are sufficient to secure their future
- 46% said they had failed to meet their savings goals with zero respondents saving more than expected
- More than 56% said the cost of food had hindered their saving plans
- 26% of respondents saved less than 10% of their monthly salary with 1% saving 70% of their monthly wage.
- The biggest motivators among Kuwaiti citizens for saving included the purchase of gold, annual holidays, medical expenses and buying land.
This is not just the case for the citizens, the Gulf expatriates are in the same boat.