Muscat: More than half of the people in Oman have indicated that their savings are not adequate for the future. While 13 per cent said their savings were sufficient for the future, only 1 per cent felt that their savings for this year were more than enough for the future, in a study conducted by the National Bonds Corporation.
This annual survey conducted on National Bonds Savings Index for the Gulf Cooperation Council (GCC) region, indicated an improvement in the residents' tendency towards saving in the UAE, Qatar, Oman, Bahrain and Kuwait. Saudi Arabia, on the other hand, revealed a marginal decrease in the total number of savers.
The research covered three main factors for saving — financial stability, potential for saving, and the savings environment and it compared the results with the outcomes of the 2012 index.
As a key highlight, it showed that 89 per cent of the respondents in the GCC expected financial stability throughout the next six months. A majority of respondents agreed that a significant portion of their expenses were disbursed on food stuff and house rents.
The study additionally showed that 20 per cent of the respondents in the GCC states currently saved 11 per cent to 20 per cent of their overall monthly income, while 4 per cent of them saved 51 per cent to 60 per cent of their overall monthly income.
Commenting on the results of the GCC Savings Index, Mohammad Qasim Al Ali, chief executive officer of National Bonds Corporation, said: "Over the past decade, the GCC economy has witnessed significant financial developments that were influenced in one way or the other by the prevailing global economic landscape. Such macro impact has triggered an urgent need to familiarise institutions and individuals with the shifts in the local economy to ensure a secure financial future. Indeed, we are very proud to be releasing the GCC Savings Index for the third consecutive year."
"The Index has become a benchmark indicator for the GCC's economy. Additionally, it is considered an important index for finding optimal solutions to the challenges faced by all sectors of the community when it comes to adopting a regular savings habit," he added.
The National Bonds Savings Index includes the results of a comprehensive annual study of the behaviour and attitudes of more than 1,707 GCC residents and low-income workers towards saving and spending money. National Bonds Corporation had launched the initiative with a view to identifying the challenges encountered by all categories and sections of communities, and to provide practical solutions for the development of saving patterns and habits among the people in the GCC countries.