Despite a slowdown, Gulf countries remain most favoured place in the world for expatriates for enabling them greater ability to save with higher disposable incomes.
With the GCC offering among the strongest wealth creation dynamics globally in terms of higher salaries, better work incentives, and a less complex environment to manage finances, expats have singled out the Gulf for the greater ability to save and the higher disposable incomes they enjoy since moving, according to HSBC's 2015 Expat Explorer survey.
Countries in the GCC rank the highest in the world when it comes to expats being able to own additional property as a result of moving, according to the survey.
The survey examined the responses of 21,950 expats from across the world to assess their views towards life in their host countries.
Buying a home is widely recognised by people as an important long-term life goal according to HSBC's Future of Retirement research. It shows that working age people in the UAE have the highest degree of confidence in property as a good way to generate income for their retirement, with over eight out of 10 (81 per cent) identifying with this sentiment.
GCC expats have singled it out for the opportunities it offers to put them on the right financial footing to purchase property. Expats in Bahrain (30 per cent), Saudi Arabia (27 per cent), the UAE and Oman (25 per cent) are the most likely to identify with this sentiment, compared to the global average of 17 per cent. "These attitudes vary significantly across the world among expats in the UK (six per cent), India (24 per cent) and the USA (19 per cent), indicating that these views are closely linked to the wealth creation dynamics in countries. Gifford Nakajima, Head of Regional Wealth Development, HSBC Bank Middle East Limited, said the GCC continues to be recognised by expats as the place that offers the greatest financial opportunities, despite the recent economic slowdown. "We see that they are, in particular, highlighting the growth in their disposable income and their ability to save as factors boosting their long-term planning capabilities, which allow them to achieve their biggest aspirations, including purchasing a home."
A key finding from the research was that the largest proportion of expats recognised that moving to the GCC pays the most compared to other regions across the world. Expats in Qatar (76 per cent) and Oman (72 per cent) are the highest in the world to say that they have more disposable income since moving, compared to a global average of 57 per cent.
Similarly, expats in Oman (76 per cent), Qatar and Saudi Arabia (75 per cent) state that they are able to save more since moving, far above the global average of 52 per cent. The UAE also ranks highly among these criteria with 65 per cent and 61 per cent of expats, respectively, expressing these sentiments.
The dynamics of the region are being recognised by young expats as well, as the research findings showed that expats between the ages of 18 and 34 in the GCC were among the highest to express that their ability to own a property rose since moving to the region.
Young expats in Qatar (31 per cent), Canada (26 per cent) and the UAE (25 per cent) were the highest globally to identify with this view. This is backed up by a majority of young expats in the region - 71 per cent in Qatar and 58 per cent in the UAE - stating that they earn more in their host country, compared to the global average of 43 per cent.
