‘Banks and wives’ push Emiratis into debt trap

Banks and wives are responsible for pushing Emiratis into buying things they don’t need, resulting in 70 per cent of locals living under the shadow of debt, lawyer Isa Bin Haider said this week.

Bin Haidar made these comments during the broadcast program Rouh Al Qanoon (Spirit of the law), aired by Noor Dubai Radio, where the he discussed in his programme ‘financial issues pending before the courts.’

He pointed to a study by Abdul-Aziz Al Hamadi, which confirmed that 70 per cent of Emiratis are immersed in debts for reasons related to the desire to acquire luxury goods and the lack of financial planning.

He added: “The study has implicated the banks and wives - the banks entice people and push them into debt, as well as some wives, especially those who are obsessed about appearances. They force their husbands to buy accessories, cars and trips abroad without a real need for those things, which reflect negatively on family expenses and then drown it in a sea of debt,” he said.

According to him, vanity, consumerism and lack of financial planning are the biggest reasons behind 70 per cent of locals being immersed in debt. He as well mentioned the study conducted by the family adviser Itedal Al Shamsi, in which she revealed that some such wives were wearing shoes priced at Dh30,000, and used makeup worth Dh10,000.

Bin Haider called on the UAE Central Bank to accelerate the development of mechanisms to implement the decision of His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE, to establish a fund with a capital of Dh10 million to address the personal loans problems of limited-income Emiratis. This, he said, will bring stability for many families struggling under the debt burden.

Issa bin Haider confirmed that recent statistics showed that the number of bounced checks issued in the country were down significantly, by up to 15 per cent, and said that such statistics instilled confidence and security in the national economy and refreshed the country’s real estate and commercial sectors.

Meanwhile Issa warned Emiratis against selling commercial licenses in return of a few thousand dirhams to some expatriates, who ruthlessly exploit such licenses. He added that, in some cases, Emirati sponsors, who are the real owners of the licenses, were shocked to learn of accumulated debt on them of up to millions of dirhams, which could lead them to be jailed.

Bin Haider called upon people to properly plan their projects so as to not end up with dire consequences.

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