Financial Advice for Expats Living in the UAE

According to some sources, up to nine out of ten British expatriates are worried about the value of their savings now reducing because of the weak pound, the dire state of the British economy, and weakened interest rates across the globe.  Those living in the UAE are particularly worried as many choose to send their money back home and they are being particularly affected by the negativity in the exchange rate currently.

In this article we’ll offer up some financial advice specifically for expats living in the UAE.  We appreciate that you’re having a tough time at the moment what with worries about the fundamentals upon which states such as Dubai have been built.  These worries translate into everyday life with many expats now stressed about the security of their jobs and the value of their homes.

Whilst it is not a recipe for success for everyone, we would urge expats living in the UAE to try and keep things in perspective because most people in the world are suffering from the fallout from their governments’ poor policy making and judgements in the face of immature banking decisions.  Given time, it’s highly likely that things will even out!  Having said that, if you’re currently worried about your savings being eroded because of exchange and interest rates, read on…

How Should Expats in the UAE Save Their Money?

Expat savers have a lot of options when it comes to investing their money, – however the decisions they make should reflect their personal circumstances, financial goals and whether they plan on repatriation at some point, or even perhaps whether they intend to retire abroad.  Generally speaking, the same is true for expat savers as it is for onshore savers.  I.e., the longer you’re willing to tie your capital up for, the better the rate of return your savings could potentially benefit from.  However, many expats have the additional benefit of being able to save on taxation on their savings, or at least defer payment of this taxation before any offshore savings are brought back onshore. 

Therefore, expat savers should look into their eligibility for higher returning, taxation saving offshore solutions, and if they are eligible, as many in the UAE are, they should consider embracing these offshore alternatives as they give savings an additional boost.

Advice for Expats Worried About Exchange Rates

Those worried about exchange rate fluctuations need to keep their concerns in relative perspective in their mind really, because there are times when the exchange rate will go against you, and times when it will be in your favour.  It’s something to be looked at over the longer term.  When it comes to saving and investing, it may not have such a negative impact over the longer term.

However, those expats who need to move significant sums of money between countries and between currencies should look into whether using an FX company to assist them will help offset the negativities of weakened exchange rates.  Forward contracts can sometimes help for example.  Time and time again it is proved that specialist FX companies offer far better rates of exchange than any high street bank for example.

Bank Account Advice for Expatriates Living in the UAE

Britons living in the UAE may well need a local account into which their salary can be paid and from which their local expenses will be taken…however, they should not necessarily consider bringing all of their financial assets onshore with them to their new nation of residence as this may be detrimental to their financial health.  Many expats in the UAE find that an offshore bank account is the healthiest place for them to keep excess cash – and then they work with an expat financial adviser to find the most advantageous and positive way to get this money to work for them.

Final Piece of Advice for Expat Savers and Investors

Make the most of your time abroad and utilise your expatriate advantage.  You may be earning more or in a position to save more than your peers back home and onshore, therefore find out how you can best ramp up your savings with tax efficient investment vehicles so that you get ahead in the financial race. 

Always seek advice from professional, well-qualified and experienced advisers who understand about your unique expatriate status, and who will listen to you and understand how to structure a financial portfolio appropriately for your unique circumstances.