Bahrain registered the most negative sentiment towards saving among the GCC countries, with an index score of -1.93 (minus 1.93) in comparison to -0.94 last year, revealed a survey by UAE-based National Bonds Corporation.

The annual Savings Index for the GCC includes the results of a comprehensive annual survey that tracks the saving and spending habits of residents, said a report in the Gulf Daily News (GDN), our sister publication.

The results that covered the three main factors for saving - financial stability, potential for saving, and the savings environment - indicate a minor increase of one per cent in the proportion of savings in Bahrain.

Out of the respondents polled, 22 per cent indicate that they are saving a little more in comparison to the same period last year.

Meanwhile, 39 per cent of Bahraini respondents claim they are saving about the same as last year compared to 19 per cent earlier.

In Bahrain, 17 per cent of savers admit to saving significantly less, showing a 14 per cent improvement over the same period last year, while seven per cent save significantly more, showing a three per cent increase over 2013.

While 54 per cent of Bahrain's respondents state that their savings are not adequate for the future, showing a four per cent decline from the same period last year, a further 19 per cent claim their savings are adequate for the future, showing a six per cent improvement over last year.

As many as 88 per cent of respondents in Bahrain anticipate their financial status will remain the same or remain stable in the next six months.

On the other hand, 12 per cent of respondents polled in Bahrain expect their financial status to remain unstable for the next six months.

The study also indicates that the top three factors that encourage savers to save more regularly in Bahrain include - children's future education expense requirements, uncertain employment future and attractive higher interest rates/returns, in that order.

Furthermore, 76 per cent of respondents in Bahrain agree that unexpected expenses will most likely impact their savings plan for the current year, followed by 66 per cent who feel the high cost of living will impact their savings.

“From the findings of this year's National Bonds Savings Index, it is apparent that the people we polled in Bahrain are neither satisfied with their savings, nor do they expect a positive financial change in the next six months,” National Bonds Corporation chief executive Mohammed Qasim Al Ali said.

“A fear of the future dominates all segments of the population, as per the findings.

“Uncertainty with regard to employment and children's education are major motivators to save.

“However, at the same time, the majority feels that this is not a good time to save,” he said. - TradeArabia News Service