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Expat Economics is the first of three reports on the results and is a new addition to this year's survey which looks at an expats' economic quality of life. This is determined by four main economic factors:
- Annual income in excess of $200,000
- A monthly disposable income in excess of $3,000
- An increase in saving while living/working abroad (in their current country of residence)
- Having at least two luxury items in the country they live in.
The UAE comes out as an ideal financial location for expats, with more respondents reporting an increase in their monthly disposable income after moving to the UAE than those moving to other countries (87% vs 74% overall) and more than half (56%) of those reporting a disposable income of over $3,000 per month.
Overall the survey showed that expats have reduced spending across the board, with the UK and US identified as having the greatest number of expats considering a move home.
Emerging markets best for expats' finances
26 countries now feature in the ranking table (compared with 12 last year), with Russia (1st place) scoring highly as a result of the number of expats saving more, high annual salaries and the amount of disposable income available. Qatar (2nd place), Saudi Arabia (3rd place) and UAE (5th place) also scored highly in the areas of increased savings and disposable income, however had their scores affected by lower annual salaries. Hong Kong ranked at 4th place.
In the UAE over two-thirds of expats in the UAE stated that their attitudes to spending had changed as a result of the economic crisis, however over three-quarters of expats (82%) living in the UAE also said that they had not considered a move home.
Interestingly, two-thirds of expats in Qatar (63%) said that their attitude to spending had not changed as a result of the economic crisis.
Geographically, Switzerland and the UK ranked 1st and 2nd respectively for Europe, with Qatar and Saudi Arabia leading the charge in the Middle East, Russia and Hong Kong top for the Asia-Pacific region and Mexico and the United States highest in the Americas.
An increase in saving
Many expatriates have taken advantage of their current location to increase the amount of money allocated to savings. Expats in the Middle East are strong savers, with the UAE ranking fifth (after Saudi Arabia, Russia, Qatar and India) as a country where expats are increasing their savings. The UAE and India were also top countries to save in the 2008 Expat Explorer report.
UAE respondents showed that they save more now than prior to their move (82% vs. 68% overall) with 49% of expats having invested in managed funds. Savings accounts were the most popular choice for expats in the UAE, with over two-thirds (69%) stating that they chose to allocate their money this way.
Expats in the UK were the worst savers/investors globally, with over a quarter of expats living in the UK (27% - the highest recorded in the survey) saying that they had reduced their savings and investments when compared to their home country.
Savings accounts are the most popular way to save for expats across virtually all markets, with the exceptions of Mexico, Malaysia, Japan and South Africa.
Where are the wealthiest expats?
Asia is home to the highest paid expats in the world, with one in four expats (25%) earning more than $200,000 per year. Individually, the survey identified Russia, Japan, Qatar and UAE are among the top countries for wealthiest expats, defined as an annual income in excess of $200,000 and a monthly disposable income in excess of $3,000.
UAE expats also claim to have a marked improvement in possessing "luxury items" - 62% of respondents said that they employed at least one member of staff and 55% own more than one car.
Belgium and Australia are home to the least wealthy expats, with almost two-thirds (61%) of expats in Belgium and 63% of expats in Australia stating that their annual salary was $100,000 or less. This compares to an average figure of 35% across all expats surveyed.
More disposable income and an increase in costs
Almost three-quarters (74%) of expats surveyed said that they have more disposable income than they did living in their country of origin. Almost all expats in Qatar (94%), Russia (97%) Saudi Arabia (98%) and UAE (87%) have more disposable income than they did living in their home country.
Food and accommodation has seen the largest increase in spending for expats, a continuing theme from the 2008 Expat Explorer report. More than two-thirds (67%)of expats spend more on accommodation than they did before moving to the UAE. More money is allocated to holidays by expats in the UAE (66%), with transport standing out as an expenditure that has decreased - over half of the expats in the UAE (51%) stated that they now spend less money on transport than in their home country.
Expat Explorer, now in its second year, surveyed over 3,100 expats from more than 50 countries and is the largest survey of its kind, with 46% more respondents that last year.
Paul Say, Head of Marketing and Communications for HSBC Bank International, said that this year's survey revealed interesting insights into a dynamic segment of the world's population, and also stands as a key indicator into how expats had been affected by global economic events.
"Last year's survey gave us some really valuable insights into such a fascinating group of people and we are pleased to see even more expats participating in this year's survey,"said Mr Say.
"As the world continues to undergo a significant economic shift, we are seeing some interesting patterns amongst the expat population, particularly in the changes to their spending habits. Despite the downturn UAE expats continue to enjoy a good standard of life and are able to continue to save which a great advantage in the current economic climate," he added.
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Posted by Rana Mesbah
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