DUBAI: Being raised in the Middle East with a lack of savings and investment culture, many young Arabs are turning to online banking services to help track their spending and budget.
Akrameh moved to the United Arab Emirates in 2019 at the start of Lebanon's financial crisis, which would later see the local currency plunge to all-time lows, with many people denied free access to their savings by stringent banking controls. S&P Global said in a 2019 report that indicators showed Gulf Arab countries appeared the most ready for fintech adoption, with the key driver being demand and a preference by clients for digital banking.
"Arabs, we took the really tough path to wealth," said Mark Chahwan, the CEO of Sarwa, a Dubai-based automated financial consultancy firm.Most oil-rich Gulf Arab states, including top crude exporter Saudi Arabia, have long provided their citizens with government-sponsored pensions. He said there was an 80 per cent increase in new Sarwa accounts since the first quarter of 2020, with up to 45,000 portfolios of people between the ages of 25 and 45.Chahwan said the average user was new to the idea of long-term investment, with many Arabs still hesitant about having to wait for benefits later rather than make quick profits.
He said smaller-ticket investors need wealth management options with more transparency, accessibility and liquidity that will help build the region's investment market.