Dubai: Around 5% of respondents reported receiving a bonus worth at least Dh 50,000, while about 31% reported receiving a bonus of up to Dh 20,000. In the post-pandemic world, 2022 will be remembered as the year of resurrection. Because Covid-19 struck, businesses also reinstated wage bonuses in 2022. In a poll, nearly half of the residents who were asked reported they received incentives the previous year.
Around 5% of respondents claimed bonuses worth at least Dh 50,000, while about 31% reported bonuses up to Dh 20,000. They were revealed in a YouGov study that Zurich International Life (Zurich), a division of Zurich Insurance Group, commissioned.
The poll, which was conducted in January 2023, included 1,200 UAE citizens, including parents and married residents from a range of socioeconomic backgrounds, nationalities, occupations, age ranges, and genders.
A.I., who has spent his whole 18-year career working in the UAE, expressed his extreme satisfaction at receiving a bonus after three years. “Over the years, we’ve gotten fairly generous bonuses of one salary or maybe a little more,” he remarked. “This year wasn’t on par with that, but I’m still pleased. I’m just relieved to have received something because I know how difficult Covid and its ramifications were for our business. For me, it represents a return to normalcy that seemed nearly unattainable during the pandemic’s worst days.
Additionally, he said that he would use the extra funds to partially pay off a loan as well as invest in the stock market.
How do residents will use the extra cash
Almost many UAE citizens (82%) intend to use their yearly bonus to put money into their future. Most UAE residents, according to the report, prioritize investing in real estate (24%), retirement savings (17.6%), paying off debts (15%), and saving for their children’s education when using their bonus (14 percent).
The top three priorities for Asians in the UAE were investing in real estate (24.7%), saving for retirement (17.4%), and saving for children’s education (14.8%). For Emiratis and Arab ex-pats, owning property (21%) was more important than paying off debt (19.2%) or saving for retirement (18.8%).
Sara, a resident of Dubai who received a bonus in 2022, claimed to have renovated her Indian home using the extra money and money she had saved up throughout the year. We’ve been wanting to do that for a while, she remarked. “We replaced the kitchen cabinets. To create one large room, we also removed a half-wall that separated two small rooms in the house. A new refrigerator and an electric stove were also fitted. My family was pleased, and I thought the money had been well spent.
The majority of UAE citizens are now feeling a greater sense of responsibility for their financial well-being, according to Taru Singhal, head of IFA Distribution, Zurich in the Middle East. According to our survey, the majority of residents take a long-term view when deciding how to use their annual bonuses.
How residents invest
The results of the poll showed what factors affected UAE citizens’ decisions about how to use their bonuses. It was shown that 75% of respondents let their loved ones and friends affect them. In contrast, employer and market trends also contributed significantly, accounting for 22% of the total. Peer pressure (18%) and financial advisor suggestions were other influences (13 percent)
