Soaring inflation hits expat lifestyles
The Gulf’s rocketing inflation is impacting the lifestyles of expatriates, with research revealing a drop in spending on extras such as eating out and holidays, research released on Tuesday has revealed.
Insurance firm Zurich International Life said in a report that the overwhelming majority of expatriates across the Gulf believed the current economic climate was causing them to tighten their purse strings and focus more on saving for the future.
The firm's Expatriate Wealth Monitor report found 85% of expatriates in Qatar, 82% of expats in Bahrain and 65% in the UAE felt rising prices were forcing them to change their financial priorities.
Inflation has hit record highs across the GCC due to rising global commodity prices and the falling value of the US dollar, to which all Gulf states, bar Kuwait, peg their currencies.
Zurich said fewer people were spending their money on their lifestyle compared to 2007, especially in the UAE where 30% fewer people said they were splashing out on eating out and holidays.
The research showed expatriates' priorities had shifted toward saving for their children's education, retirement and to send money home.
Paul Haran, regional director at Zurich Middle East, said continued economic uncertainty worldwide had seen everyone “tighten their belts” and the Gulf region no exception.
“What is interesting is that in a region associated with widespread wealth and booming economic growth, expats are now starting to feel the pinch,” Haran said in a statement.
Despite the impact of rising costs, the majority of expatriates surveyed said they enjoyed a better quality of life in the Gulf then in their home countries.
Just over 70% of expatriates in Bahrain said they had a much better lifestyle in the Gulf, followed by around 68% of expats in the UAE and Qatar.
The Zurich Wealth Monitor surveyed 700 expatriate professionals living in the UAE, Bahrain and Qatar on their approaches to financial planning and examined their views on the impact of the current economic climate on their financial affairs.
In the UAE the respondents were split 49% Asian, 25% Arab and Western 26%; in Bahrain 57% Asian, 30% Arab and 13% Western; and in Qatar 76% Asian, 18% Arab and 6% Western.
/Arabian Business/
Insurance firm Zurich International Life said in a report that the overwhelming majority of expatriates across the Gulf believed the current economic climate was causing them to tighten their purse strings and focus more on saving for the future.
The firm's Expatriate Wealth Monitor report found 85% of expatriates in Qatar, 82% of expats in Bahrain and 65% in the UAE felt rising prices were forcing them to change their financial priorities.
Inflation has hit record highs across the GCC due to rising global commodity prices and the falling value of the US dollar, to which all Gulf states, bar Kuwait, peg their currencies.
Zurich said fewer people were spending their money on their lifestyle compared to 2007, especially in the UAE where 30% fewer people said they were splashing out on eating out and holidays.
The research showed expatriates' priorities had shifted toward saving for their children's education, retirement and to send money home.
Paul Haran, regional director at Zurich Middle East, said continued economic uncertainty worldwide had seen everyone “tighten their belts” and the Gulf region no exception.
“What is interesting is that in a region associated with widespread wealth and booming economic growth, expats are now starting to feel the pinch,” Haran said in a statement.
Despite the impact of rising costs, the majority of expatriates surveyed said they enjoyed a better quality of life in the Gulf then in their home countries.
Just over 70% of expatriates in Bahrain said they had a much better lifestyle in the Gulf, followed by around 68% of expats in the UAE and Qatar.
The Zurich Wealth Monitor surveyed 700 expatriate professionals living in the UAE, Bahrain and Qatar on their approaches to financial planning and examined their views on the impact of the current economic climate on their financial affairs.
In the UAE the respondents were split 49% Asian, 25% Arab and Western 26%; in Bahrain 57% Asian, 30% Arab and 13% Western; and in Qatar 76% Asian, 18% Arab and 6% Western.
/Arabian Business/
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