UAE News

Second Salary Schemes Gaining Popularity in the UAE

Second, salary schemes are becoming increasingly popular among UAE residents, particularly expats from South and Southeast Asia, and citizens seeking to diversify their income sources.

Initiatives by National Bonds and Emirates Draw:

Two prominent companies, National Bonds and Emirates Draw, have introduced second salary plans to provide residents with a reliable strategy for securing future income in challenging market conditions.

National Bonds offer a second salary plan that starts with a monthly contribution as low as Dh1,000. Subscribers can select a tenure ranging from 3 to 10 years and witness their savings multiply. 

At the end of the savings period, they receive the principal amount and accumulated profit as monthly income for a chosen duration.

Emirates Draw Rewards:

On the other hand, Emirates Draw rewards its winners with Dh25,000 per month for an impressive 25 years. 

Notably, the majority of winners in the Emirates Draw have been nationals from South and Southeast Asia.

According to the National Bonds Savings Index, around 33 percent of residents, particularly women in their 40s, express concerns about relying on a single income source.

Second Salary Plan’s Popularity:

Since its launch in March 2023, the second salary plan by National Bonds has garnered nearly 2,000 subscribers, with 32 percent being women and an average age of 38.

The plan has attracted participants from various nationalities, with the top five being Indians (53 percent), UAE nationals (13 percent), Filipinos (8 percent), Pakistanis (5 percent), and Jordanians (2 percent).

Common Savings Aspirations:

Emiratis and expatriates share common savings goals, including entrepreneurship, home ownership, and securing future educational opportunities for themselves and their children.

Contribution Averages and Total Collections:

Customers save approximately Dh2,500 per month, resulting in a total monthly collection of approximately Dh5 million.

Financial Stability in Uncertain Times:

The importance of financial stability and proper retirement planning has grown significantly in the minds of UAE residents, especially following the global economic uncertainties that have emerged, particularly in the wake of the COVID-19 pandemic.

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