"National Bonds" attributed it to a decrease in unjustified consumption, hedging against "Corona" and increased awareness
34.5 billion dirhams, an increase in savings deposits in local banks within 8 months
Reducing consumption reflects positively on the levels of money saving.
Photography: Ashok Verma
Muhammad Qasim Al-Ali: "Increasing savings rates will have positive effects on the national economy."
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Central bank data revealed that savings deposits in banks rose during the first eight months of this year, at a value of 34.5 billion dirhams, indicating that the period between March and August, that is, since the spread of the Corona virus, accounted for about 67.5%.
In addition, the National Bonds Corporation attributed this rise to three main factors, namely the decrease in unjustified consumption, the hedge against the Corona crisis, and the high level of awareness among families.
The company assured, to Emirates Today, that the saving habit is a benign behavior, and it is good that it continues even after the end of the Corona crisis, as it helps build a strong economy immune from crises.
In detail, the latest data issued by the Central Bank showed that savings and savings deposits in banks increased during the first eight months of this year, with a value of 34.5 billion dirhams, with 67.6% of them (about 23.3 billion dirhams) recorded between March and August. That is, since the spread of the Corona virus.
Statistics, of which Emirates Today obtained a copy, indicated that the cumulative balance of savings deposits reached 206.7 billion dirhams at the end of last August, compared to 172.2 billion dirhams at the end of last year, compared to 183.4 billion dirhams at the end of March 2020.
3 factors
In addition, the CEO of National Bonds Corporation, Muhammad Qasim Al-Ali, said that of course, during crises, especially those whose nature and course are unpredictable, such as the "Covid-19" crisis, families resort to reducing unjustified consumption, which is reflected. Positively on the levels of money saving.
Al-Ali added: “What we are witnessing in the UAE, of an increase in household saving rates, is not a strange approach, rather it is driven by three main factors,” explaining that the first factor is the period of national sterilization, which the country witnessed as part of the precautionary measures to limit the spread of the virus. Corona, and the subsequent recommendations for working from home, as this reality mainly resulted in a decrease in unjustified consumption rates, so that consumption is limited to what is necessary only, and an additional percentage of the salary was devoted to saving.
He indicated that the second factor is to hedge against the crisis, as families and employees generally resorted to paying attention to their expenses and rationalizing them, in order to save, for fear of any emergency that might befall them, while the third factor is the high level of awareness among families in the UAE of the importance of saving and its role in creating a social safety net It can protect them in the event of any emergency, or increase their income if invested.
Positive effects
Al-Ali indicated that the increase in savings rates will have positive effects on the national economy, as the cash flow among people has increased, and they can invest it in projects that generate more income for them, and families have increased awareness about saving, and have proven that they are able to do this, in case of rationalization. Unjustified depreciation.
He stated that, "In the end, it is necessary to stress the need to continue this good habit even after the end of the epidemic, because saving is not linked to a period of time or an emergency matter, but rather is a habit that gains and protects those who carried it out."
67.6%
Of the savings deposits, they were recorded in the period between March and August, that is, since the spread of "Corona".
The cumulative balance of savings deposits amounted to 206.7 billion dirhams at the end of last August.
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