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A Snapshot of Family Expenses | Expat Echo Dubai

Image_ 01Take a look at this interesting article by Ruth Mendez. Ruth is a working mom of twin girls who works as a Community Manager for Afterschool.ae, the leading after school activity planning platform for kids and moms in Dubai.

A Snapshot of family expenses. In the latest survey done by the Statistics Centre in Abu Dhabi, there were 8,000 households that served as respondents for their efforts know the average income and expenditure of each household in UAE. Abu Dhabi is home to 55% of the total population of UAE and therefore, it’s a great location to understand and reflect the majority of the Emirati and Expat lifestyle.
Who: 8,000 households (5,700 Emiratis/2,300 Expats)
What: Survey of Average Family Income and Expenditure in UAE
When:
2013
Where: Abu Dhabi

A look at the income of UAE households
According to the survey, the average number of employed family members in a household is 2, which means both parents are usually employed at the same time. This finding also suggests that most households in UAE are comprised of relatively young families, with children who are still studying.
Another result of the survey reveals the average income of a household in UAE. They divided the respondents into two: Emiratis (UAE residents) and Expats. Based on the study, Emiratis earn DH46, 505.28 per month, while Expats earn Dh19, 239.05. Averaging these two figures will net a total of Dh32, 872.17—a 28% increase since the previous survey held 2009.
It is worth noting that Emiratis earn more than double the average monthly income of Expats.
Average income (now) = Dh32,872.17 per month (Dh46,505.28 Emirati, Dh19,239.05 Expat)
Dh 394,465.98 annually (Dh558,063.36 Emirati, Dh230,868.60 Expat)
Average income (as of 2009) = Dh25,756.20 per month (Dh36,438.10 Emirati / Dh15,074.30 Expat)
Dh 309,074.40 annually (Dh437,257.2 Emirati / Dh180,891.60 Expat)
2009 vs. now
= 28% increase of average monthly income per household

A breakdown of the expenditure of UAE households

The latest survey reveals that the average expenditure of UAE households in a month is Dh22, 960. Compared to the 2009 numbers, there’s a total increase of 41% in the average expenditure. This shows that while the average household experiences increase in total income, prices and expenses go up as well. Proof of this is the uptick in the Commodities Price Index in UAE. In 2013 alone, the CPI has grown to 74 points—4 points more than the previous year’s.
Average monthly expenditure (now) = Dh 22, 960
Average monthly expenditure (2009) = Dh16, 317.20
2009 vs now = 41% increase of average monthly expenditure per household
Food, Rent, Utilities, Transportation, and Maintenance takes away the largest chunk of income from the pocket, amounting to 43% of the average total spending. The rest of the expenses are taken up by children’s education, mobile communication, and commodities such as clothing and toiletries.

Education:
32.6% of families spend Dh50,000 annually on schooling
28.1% of families spend Dh6224 annually on after school activities

Communication:
Average mobile phones per household = 4
Average number of landline per household = 1

Shelter:
84.4% owned houses
15.6% tenants
24.9% on housing allowance receiving as much as 90.6% of rental value
Average monthly rent = Dh10,422

Commodities:
Clothing
– 31% of families reduced clothing expenses
Toiletries – 52% of families reduced toiletries expenses due to high prices.



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