97% of UAE expats save more than they would at home but spending is rising: Report
A recent study by St James’s Place Middle East found that 97% of affluent UAE residents save more than they would in their home countries, even as they increase discretionary spending. The report highlights career growth and a favorable tax environment as key drivers, and shows that many expats pla…
According to a fresh survey conducted by St James’s Place Middle East, the majority of wealthy expatriates living in the United Arab Emirates are not only earning more than they would back home but are also managing to save a larger portion of their income. The study, which gathered responses from 450 residents across the UAE, reveals that 96 % of participants report higher earnings in the Emirates, while a striking 97 % say they are able to set aside more money each month than they would in their countries of origin.
Why the UAE Attracts High‑Net‑Worth Expats
Experts point to two main factors that explain the financial advantage: career advancement opportunities and the country’s tax‑free environment. Daniel George, Head of Business for the Middle East at St James’s Place, told Khaleej Times that 64 % of respondents cited career growth as the primary reason for relocating. Meanwhile, a staggering 92 % of participants said that the UAE’s lack of personal income tax played a decisive role in their decision to move abroad.
George noted that even with rising living costs, the net effect of higher salaries and zero taxation still leaves expats with a substantial surplus. "Even so, 97 % say they save more each month than they would in their home country. That suggests the financial advantage remains substantial for this group, despite the pressures on household budgets," he said.
Where the Extra Money Is Going
The survey also explored how the increased disposable income is being spent. Among those who reported higher discretionary spending, 95 % said they were spending more on travel and leisure, while 90 % increased their budgets for dining and entertainment. Family support emerged as a major area of outlay, with 88 % of respondents allocating more funds to help relatives back home.
Health and wellness, education and training also saw significant rises, with 86 % and 84 % of participants respectively reporting higher expenditures in these categories. Importantly, 88 % of those who increased their discretionary spend also reported putting more money into savings and investments, indicating a balanced approach between enjoying the present and planning for the future.
Long‑Term Financial Planning and Lifestyle Choices
One of the most striking findings is the impact of living in the UAE on long‑term financial goals. Nearly two‑thirds of respondents—64 %—stated that achieving financial freedom would have taken at least five years longer if they had never lived abroad. Meanwhile, 70 % believe that residing in the Emirates will enable them to retire at least three years earlier than they would have otherwise.
These benefits are also influencing how long expats intend to stay in the country. More than half (55 %) said they have remained overseas longer than originally planned, and a robust 78 % expect to live abroad for at least eight years. George explained that as expats spend more time abroad, their financial lives become increasingly international, with assets and future plans spanning multiple jurisdictions. "Decisions around investment, tax, retirement and succession are increasingly interconnected – and long‑term, cross‑border planning is increasingly important," he added.
Implications for the UAE Economy and Expat Community
The findings underscore the UAE’s position as a magnet for high‑net‑worth individuals who seek both career advancement and a favorable fiscal regime. The influx of affluent expatriates contributes to the country’s consumer market, particularly in sectors such as travel, hospitality, dining, health and education. At the same time, the willingness of these residents to save and invest abroad may influence global capital flows and investment patterns.
For policymakers, the data suggest that maintaining a tax‑friendly environment and supporting professional mobility will continue to attract wealthy talent. For expats, the survey highlights the importance of balancing lifestyle choices with long‑term financial planning, especially as many plan to stay in the UAE for extended periods.
In sum, while the cost of living in the UAE remains high, the combination of higher earnings, zero income tax and career opportunities creates a net benefit that allows affluent expatriates to save more, spend on quality experiences, and plan for an earlier retirement.
Why it matters
The study reveals how the UAE’s unique economic environment enables wealthy expatriates to enhance both their savings and lifestyle, shaping long‑term financial planning and influencing global investment flows.
Key points
- 97% of affluent UAE residents save more than in their home countries
- Career growth and tax‑free policy drive relocation
- Expat spending rises on travel, dining, family support and education
- Living abroad can shorten the path to financial freedom and early retirement
- Many expats plan to stay in the UAE for at least eight years
Frequently asked questions
What factors motivate expats to move to the UAE?
Career advancement opportunities and the UAE’s zero personal income tax are the primary drivers, according to the survey.
How does the UAE’s tax environment affect expat savings?
The absence of personal income tax allows expats to retain a larger portion of their earnings, contributing to higher savings rates.
What areas see increased discretionary spending among expats?
Travel and leisure, dining and entertainment, family support, health and wellness, and education and training are the top categories.
Do expats plan to stay in the UAE longer than expected?
Yes, 55% have stayed longer than anticipated, and 78% expect to live abroad for at least eight years.
