# Saving in Dubai



## dubaidubaidubai (May 3, 2011)

*Best Way to SAVE MONEY in Dubai ???*

Hi All

I've had a quick look through past threads but have not found too much that is (a) of relevance or (b) recent (cue clever poster that exposes the errors of my searching...) 

So I thought I'd start my own...

I moved to Dubai 6 months ago from the UK and to date have not saved a penny. However, I want to make 2012 my year to be financially astute and to save as much as I possibly can. I'm therefore interested in hearing how you save, the techniques (legal) that you use and, products you have chosen and general advice.

For instance, on pay day, do you move your money between Dubai accounts, transfer funds to UAE savings accounts, buy AE national bonds, invest within UAE. Also, do you transfer money back to the UK? If so, how? Wire transfer, normal online bank transfer? Take it back in your suitcase? Do you use any particular currency conversion companies? Which banks in UK do you use, products do you prefer etc? What kind of interest rates have you spotted? ISA's?

The above may seem a bit wordy and scatty (sorry) but just trying to cover all bases. If you think of a much easier/less complex way of advising...shoot! hehe

In case it helps for any memberships/eligibility issues that you may think of (for cards/accounts etc), I am a 29 year old male, British national, UAE resident (obviously), with a salary of 32,000 AED per month (only current monthly required spending is 5,500 rent and 2,300 for car hire).

Cheers


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## AB-Fit (Oct 10, 2011)

Saving? Dubai? Does not compute.


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## INFAMOUS (Apr 19, 2011)

You should be able to easily save money... Just debit it off directly the same day you're paid so you don't miss it... Whether you send it home, in a different account or offshore somewhere it's totally up to you. There are really no good return rates these days so just find a fund that will work best for what you are looking for. Short term/Long term etc. 
I invest 1/3 of my earnings... 1/3 covers living expenses and 1/3 to enjoy being here


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## fcjb1970 (Apr 30, 2010)

Spend less money than you make, it is actually pretty easy mathematics.


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## Eng.Khaled (Feb 8, 2011)

Try National Bonds, and whatever you deposit their forget about it. You can deposit with any Ansari Exchange.


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## pamela0810 (Apr 5, 2010)

What do you typically spend your money on? Not taking into account the AED 7,500/- on rent and car hire, you are still left with AED 24,500 a month. For a single male, that is a whole lot of spending and not enough saving or no savings at all!

You definitely need to figure out where you spend most of your money and cut back in those areas first. Also, Infamous's suggestion of debiting an amount as soon as your salary hits your account is very sensible as you are then left with enough to spend without having to worry about not saving anything at the end of the month.

Good luck


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## hehehaha22222 (Jul 29, 2011)

its an odd idea, maybe you can buy expensive watches, popular models, its kind of an investment.... people pays good money for second hand watches.

Or just get a mortgage, in long run, it helps to cut the spending.....


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## INFAMOUS (Apr 19, 2011)

hehehaha22222 said:


> its an odd idea, maybe you can buy expensive watches, popular models, its kind of an investment.... people pays good money for second hand watches.
> 
> Or just get a mortgage, in long run, it helps to cut the spending.....


Correction... buy them second hand to begin with to save on the depreciation factor... Keep them in good shape and you'll be way further ahead!


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## dubaidubaidubai (May 3, 2011)

INFAMOUS said:


> You should be able to easily save money... Just debit it off directly the same day you're paid so you don't miss it... Whether you send it home, in a different account or offshore somewhere it's totally up to you. There are really no good return rates these days so just find a fund that will work best for what you are looking for. Short term/Long term etc. If you are looking for a good financial adviser you can PM me and I have a great guy here from the UK.
> 
> I invest 1/3 of my earnings... 1/3 covers living expenses and 1/3 to enjoy being here


Hi Infamous - thanks for the feedback.

Yes, I have adopted the same system (which I used to do when working in London) so that's a start. Currently sending back to the UK to my normal Santander Account. Considering an offshore account with Barclays as there seems to be some benefit there. Where do you invest?


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## dubaidubaidubai (May 3, 2011)

fcjb1970 said:


> Spend less money than you make, it is actually pretty easy mathematics.


Very good top-level advice - thanks

I guess the underlying bit of my question though is where to put the money I don't spend.


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## dubaidubaidubai (May 3, 2011)

pamela0810 said:


> What do you typically spend your money on? Not taking into account the AED 7,500/- on rent and car hire, you are still left with AED 24,500 a month. For a single male, that is a whole lot of spending and not enough saving or no savings at all!
> 
> You definitely need to figure out where you spend most of your money and cut back in those areas first. Also, Infamous's suggestion of debiting an amount as soon as your salary hits your account is very sensible as you are then left with enough to spend without having to worry about not saving anything at the end of the month.
> 
> Good luck


I know - Pamela...pretty disgusting to add up all the waste! But I promised myself a good time for the first 6 months in Dubai. Coming from the City, I felt like I needed to just let loose. So I travelled (Aus, EU, China) and friends visited and we did the sky-dives, safari's, brunches and, of course, Christmas etc. Nothing lavish, just activities which have been great. 6 months is over and now I plan to save.

Cutting back is not a problem and I am disciplined in saving (I have savings in London). I guess I'm just wondering where other expats put their money whilst saving. I think I'm hearing loud and clear, get it out of your account in Dubai and over to UK!! LOL


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## mitchell0417 (Oct 11, 2010)

In terms of where to save I would think that will depend on the rules in the UK. It may be more tax efficient for the money to already be in the UK than for you to have to "import" large amounts when you liquidate UAE assets when you leave and go back home. We send about 60% of our money back to Aus to cover our investements here and at least then the Aus gov wont see a large transfer which they will almost certanly want to see a slice of - we will also have a place to live when we return and a bit of a nest-egg. I would get some tax advice from an expert in this sort of thing in the UK and see whatthey say.


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## wazza2222 (Sep 7, 2011)

I'm saving my hard earned in the bank of BMW... I get tonnes of interest but no money!
Yes, I am the grasshopper!


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## NAUAE (Jun 4, 2010)

Hmmm lots of top level advice; here are my views on the situation:

1) Never ever keep savings in the UAE or for that matter, invest locally in anything that is long term. If you die, your accounts get frozen and your next of kin have to go through a whole rigmarole to ever see the funds. If you are a non-muslim, would suggest that you get a will done as well as a power of attorney to make things easier in terms of protection
2) Invest offshore in tax havens like Jersey, Isle of Man etc. The options available to you are mutual funds, fixed deposit savings accounts, bonds, notes, property or commodity backed funds etc. The best way to do it is to contact a financial adviser and have him take you through the options. For some investments, you can make them tax efficient for the UK.

Mutual funds - Number of funds through different companies like Zurich, Generali etc. You can make lump sum payments or a fixed monthly _(recommended)_. The funds are held offshore and you get returns anywhere from 5-15% depending on your picks of funds. Mind you, these are long term policies i.e. you need to think on a 3-5 year horizon not a few months.
Banks - Open offshore bank accounts and transfer savings there. Then turn them around and invest in fixed deposits if you want low risk returns. Better than keeping money in your UAE account or transferring to home country and putting up with tax issues.
Bonds / Notes Etc - Your financial adviser will be able to guide you as periodically new offerings come out. For example, I am thinking of investing in a note that is backed by Royal Bank of Canada and focused on high tech companies like Yahoo etc and gives 9% annualized return over 4 years for minimum investment of $15,000. This is a relatively low risk investment.

This is just an overview but there are a LOT of options. If you want to be in touch with a Financial Adviser, drop me a PM and will refer mine to you. Oh and yeah, they don't charge you anything. They make their money from the companies whose products they recommend to you.

Hope that helps

P.S. To transfer money _(with relatively less hassle as there are other options but involve more hassle)_ send it through the various exchange houses. For large amounts, they wont charge a commission and you will get a good rate. Most banks give you crappy rates for online transfers anyway


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## dubaidubaidubai (May 3, 2011)

NAUAE said:


> Hmmm lots of top level advice; here are my views on the situation:
> 
> 1) Never ever keep savings in the UAE or for that matter, invest locally in anything that is long term. If you die, your accounts get frozen and your next of kin have to go through a whole rigmarole to ever see the funds. If you are a non-muslim, would suggest that you get a will done as well as a power of attorney to make things easier in terms of protection
> 2) Invest offshore in tax havens like Jersey, Isle of Man etc. The options available to you are mutual funds, fixed deposit savings accounts, bonds, notes, property or commodity backed funds etc. The best way to do it is to contact a financial adviser and have him take you through the options. For some investments, you can make them tax efficient for the UK.
> ...



Definitely the kind of advice I was looking for!! Thanks so much for taking the time to write this...all very clear and helpful. Exactly as I thought...simply transferring my money back to the UK is not the best way to maximise the money I'm making and the returns I can get. 

It would be great to get in touch with your financial advisor, though I'm not too sure how to PM. I will look at this now! 

Thanks again!


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## D.R.S. (Feb 12, 2012)

@xabiachica

How is that advert? The fella is looking for help and I am offering help, it's not like I have started the discussion, neither am I spamming the forum. It just happens to be my line of work. If I am looking for a specialist doctor and that guy happens to read my forum post and places his number, would you also delete it?


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## Jynxgirl (Nov 27, 2009)

Financial advisors a dime a dozen and unfortunatly overall are quite bad. If you are not a regular on the forum, no one is going to vouch for you.


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## pamela0810 (Apr 5, 2010)

Jynxgirl said:


> Financial advisors a dime a dozen and unfortunatly overall are quite bad. If you are not a regular on the forum, no one is going to vouch for you.


He is from Switzerland....that automatically makes him reputable enough to handle our money.....just like the engineers from my country


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## D.R.S. (Feb 12, 2012)

pamela0810 said:


> He is from Switzerland....that automatically makes him reputable enough to handle our money.....just like the engineers from my country


lol, exactly. what else can i offer but chocolate, mountains and banking?


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## pamela0810 (Apr 5, 2010)

You forgot watches! I'm heading out to Switzerland in 2 days yay! 

Maybe you should give the OP your advice without adding your contact details. That way it doesn't look like spam.


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## D.R.S. (Feb 12, 2012)

pamela0810 said:


> You forgot watches! I'm heading out to Switzerland in 2 days yay!
> 
> Maybe you should give the OP your advice without adding your contact details. That way it doesn't look like spam.


Nice for you, where are you heading to? You better bring warm clothes...

Yeah, maybe it wouldn't have looked like spam but then a whole other bunch of people would have blamed me for gross negligence. 

And mind you that the original post said 'If you think of a much easier/less complex way of advising...shoot!', so I gave my contact. How much easier does it get. ;-)


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## XDoodlebugger (Jan 24, 2012)

NAUAE said:


> P.S. To transfer money _(with relatively less hassle as there are other options but involve more hassle)_ send it through the various exchange houses. For large amounts, they wont charge a commission and you will get a good rate. Most banks give you crappy rates for online transfers anyway


Can you recommend a specific exchange house? I need to send to the US.


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## A99 (Jun 6, 2012)

Hi guys,

Moving out towards the end of the year with my girlfriend and were looking to save some of our joint income. I've read all the advice on here re investing etc but were probably not going to have the minimum outlay to do this. We're looking at just putting some of the money we earn away, possibly sending it back to the UK. Can anyone advise what the tax issues are around this specific to the UK? For example, if we send back £1000 a month to a UK bank account? Also, what kind of charges are there for sending from a foreign account to a UK account?

Thanks.


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## Tylerv (Jun 6, 2012)

dubaidubaidubai said:


> Hi Infamous - thanks for the feedback.
> 
> Yes, I have adopted the same system (which I used to do when working in London) so that's a start. Currently sending back to the UK to my normal Santander Account. Considering an offshore account with Barclays as there seems to be some benefit there. Where do you invest?


Hi I need to send back to Santander does it cost much and take time to send back? Who do u bank with there?


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## Elphaba (Jan 24, 2008)

A99 said:


> Hi guys,
> 
> Moving out towards the end of the year with my girlfriend and were looking to save some of our joint income. I've read all the advice on here re investing etc but were probably not going to have the minimum outlay to do this. We're looking at just putting some of the money we earn away, possibly sending it back to the UK. Can anyone advise what the tax issues are around this specific to the UK? For example, if we send back £1000 a month to a UK bank account? Also, what kind of charges are there for sending from a foreign account to a UK account?
> 
> Thanks.


The tax situation depends on your personal tax status.

See here for general info: Guidance for British Expats – updated May 2012 | Financialuae's Blog

If you send small amount from bank direct to bank you will have fees and a poor exchange rate. Larger amounts can be send via an exchange house (I use one both for myself and for my clients) that has no fees and much better rates.


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