Revealed: Where UAE employees spend their bonus money

Majority of UAE residents have become financially prudent with their bonus money, a trait which was less apparent during the boom years.

Unlike the previous years, the annual payment to employees, is being utilised to reduce the debt burden or is being saved for higher education of children.

According to an 'Emirates24|7' poll,  20 per cent of respondents opted to say they saved their bonuses for the higher education of  their children, whereas, 13 per cent have diverted these funds in the part pre-payment of their home loan.

“In the wake of the economic turmoil witnessed over the last few years, many people are being much more proactive about planning for the future,” Richard Musty, Managing Director Lloyds TSB in the Middle East recently told this website.

According to R. Raghu, Senior Vice-President-Research at Kuwait Financial Centre (Markaz), reducing debt should be a priority of people. “Eliminating or reducing debt is like reducing weight! Most desirable but most of the times impossible,” he said.

As revealed by the poll, 6 per cent of residents put their money into buying jewellery, which can also be considered as an investment. However, 5 per cent of the online participants spend it on a vacation and 5 per cent become shopaholics till the money lasts.

Unfortunately, the majority of the residents in the country have not received a bonus in the past two years. Fifty-two per cent of respondents said they’ve been unlucky when it came to their annual bonuses. “I can only imagine what I could have done with it. There’s been no bonus in the past two years and I see nothing coming this year as well,” said an online reader.

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