According to the report, wealthy expatriates in the United Arab Emirates (UAE) are saving more money than they could in their home countries, despite high living costs. However, many of them are increasing spending on travel, dining, family support, and other areas.
In a survey conducted by St James’s Place Middle East, almost all respondents, specifically 96 percent, reported earning more in the UAE than in their countries of origin. Furthermore, 97 percent stated that they manage to save more money in the UAE than at home. Nearly half of the participants, accounting for 48 percent, noted that their earnings and savings exceed benchmarks by 25 percent or more.
The main reasons cited for this discrepancy were the career growth opportunities and the tax environment in the UAE, as noted by Daniel George, Head of Middle East Business at St James’s Place. A total of 450 residents of the UAE participated in the study.
George told Khaleej Times that 'career progression is a significant part of the explanation,' emphasizing that 64 percent of respondents cited career growth as the primary reason for moving abroad. Additionally, the UAE's tax system also plays an important role, as 92 percent stated that tax policy influences the choice of where an expat lives.
Despite this, George added: 'Nevertheless, 97 percent say they save more each month than in their home country. This indicates that the financial advantage remains substantial for this group, despite pressure on family budgets.'
Among those whose discretionary spending has increased, 95 percent indicated spending more on leisure and travel, while 90 percent reported higher expenses on food and entertainment. Family support became another major expense category: 88 percent reported increased spending on helping family. At the same time, 86 percent noted an increase in health and wellness expenses, and 84 percent—on education and training.
Moreover, 88 percent of those who increased discretionary spending are also directing more funds towards savings and investments. George believes these results demonstrate how expats are using additional income to align current spending with long-term financial goals. He noted: 'The cumulative effect can be significant.'
Nearly two-thirds of respondents, or 64 percent, suggested that achieving financial independence would take at least five years longer if they had never lived abroad. Moreover, 70 percent believe that living abroad will allow them to retire at least three years earlier. Financial benefits also motivate many expats to stay abroad longer than planned. More than half, specifically 55 percent, reported living abroad longer than expected, and 78 percent plan to live abroad for at least eight years.
George concluded that as expats spend more time abroad, their financial lives become more international, encompassing assets and plans in multiple countries. He emphasized: 'Decisions regarding investments, taxes, retirement, and inheritance are becoming increasingly interconnected—and long-term cross-border planning is gaining greater importance.'
