Daily Personal Finance Insights – Increasing expectations
Save more, use credit cards less
In a 999 magazine survey of 650 UAE residents, a whopping 91% said they planned to save more. While it was also clear that many would fail to do so because of factors such as cost of living and stagnant income; it is a paradigm shift in a country where there has so far been no uniform culture of saving. In the survey, 70% said they planned to reduce the number of their credit cards; 65% had already done so; and 87% owned only one or two credit cards.
Property prices highs and lows
A report by ECA International indicates Abu Dhabi was the most expensive city in the Middle East to rent a three-bedroom apartment last year. Globally, the capital was ranked 23rd, with average rent per month at Dhs14,411. Dubai took the 35th position with average rent per month being Dhs12,754. According to Asteco Property Management, the average rents in Abu Dhabi declined by 12% in 2012 and a further decline is expected this year as 17,000 new units enter the market.
Internet retailing boom
Internet retail sales in the UAE are forecast to increase by 95% to USD 470 million per year by 2018, according to research from Euromonitor International. Ayman Ghanam, Research Analyst at Euromonitor, said: "This trend will be encouraged by the growing usage of credit cards as consumers become more comfortable with buying online.”
Big leap in trading
The value of equities traded on NASDAQ Dubai in the fourth quarter of 2012 reached USD 149.7 million, an increase of 12% from USD 133.1 million in the same period of 2011.
Standard for Sukuk
Dubai Financial Market (DFM) is inviting feedback on its draft “Standard for Issuing, Acquiring, and Trading Sukuk.” The Standard thoroughly explains various types of Sukuk, in addition to the general Shari’a principles that govern issuance, owning and trading Sukuk, and identifying the forbidden financial instruments including; bonds and stocks of companies whose primary activity is prohibited. Essa Kazim, Managing Director and CEO, Dubai Financial Market said: “As the first Shari’a compliant exchange in the world, we are looking forward to create a comprehensive standard which will eventually play a crucial role in the expansion and prosperity of the Islamic Finance sector.”
The total value of Sukuk is expected to soar to US$ 292 billion in 2016 from US$ 70 billion in 2011.