Analysis of Savings and Investments in First Ten Years of Employment in Dubai

Abstract

AbstractIt is crucial in the modern world to not only start thinking about savings and investing but also to act on it. For long term financial stability and growth, one needs to start saving and then carefully investing the savings in different investment avenues. Savings and investments are used interchangeably. But the fact is that both have different meanings with one common motive of safeguarding the future in terms of finance. This paper attempts to study the savings and investments outlined in the first ten years of employment in Dubai. Dubai has all possible investment avenues available, just like any other economy may have. The primary data were collected from 118 respondents, with 65 men and 53 women. It is found that most of the employees are aware of the savings and investments. Males are more aware and hence making more savings and investments as compared to females. It is also found that the majority of the employees save 10–20% of their earnings monthly. The purpose of saving is future security followed by safety and tax savings. Further research found a significant relationship between investment awareness and Gender and the relationship between educational qualification and selection of the investment avenues.Purpose: This study focuses on the savings and investment opportunities for the employees; further it will explore various factors that motivate employees to save and invest and factors that affect the investment behaviors of the employees.Methodology: Primary and secondary data sources were used for data collection. Primary data was collected from the targeted population who are in the first ten years of their employment in the UAE by using Google Forms. A probability sampling method was selected for this study. The research instrument was administered to 120 respondents out of which 118 were returned. 2 respondents could not return the form and hence the final sample size was 118, with 65 men and 53 women participating in the survey.Findings: A significant relationship between gender and investment awareness. Men are relatively more aware of the investment and savings avenues as compared to the women. Women are more driven to invest in gold as compared to their male counterparts. There is a positive relationship between level of education and awareness regarding saving and investment.Recommendations: Creating monthly and yearly budget is crucial for the financially safe future. Investments in liquid funds to have more flexibility can be considered in this age group. Consulting a financial advisor to make wise investment choices is recommended. Further research can be conducted on the gender-wise investment choices, investment choices at different age level from the early years of earning till retirement.