It is sadly all too common for people to get into debt whilst living in the UAE, for multiple reasons, so this article is designed to give you the steps to work through to deal with any debt problems you may have.
It is really important that this is dealt with as non-payment of monies owed is a criminal issue under UAE law and can lead to serious consequences.
These are the steps you need to take to get back in control and to deal with the banks.
When I started writing the On Your Side column for The National newspaper nearly six years ago I never imagined that we’d still be going strong 300 columns later. 300 feels like a milestone and in that time I have answered over a thousand queries in print, solved numerous problems for readers and received thousands of emails.
This is the first in an occasional series on topics where I receive a great number of queries. With rental prices in Dubai, and across the UAE generally, increasing significantly, many people have been asked for excessive increases or asked to vacate illegally, so this article is a brief overview of tenants’ rights in Dubai. Continue reading
Time certainly does fly. I have been writing the On Your Side column in the Saturday edition of The National newspaper for five years. That’s 262 columns to date and something like 800 questions answered and problems solved.
You may have seen some stories in the local press regarding financial problems at Green Crescent Insurance a provider of medical insurance plan in the UAE, based in Abu Dhabi. Following particularly poor financial performance the company has announced that it would hold a shareholder meeting in either November or December to decide whether to dissolve the company or continue operating on a reduced capital basis. The company has only been trading since 2009, but has posted losses ever year and a loss of Dh13.7 million (US$3.73m) in the first half of 2012.
Speaking to The National newspaper, Fareed Lutfi, the secretary general of Emirates Insurance Association, the body representing the interests of UAE insurers, said “There are too many companies and it’s a cut-throat industry. Many have been selling insurance too cheaply to compete, rather than looking at their bottom line.” The articles goes on to state that ‘Mr Lutfi estimates that global healthcare insurance premiums have been rising by an average of 15 to 20 per cent every year, squeezing margins to 2 to 3 per cent for even well-performing local insurers.’
It is certainly true that the costs of medical insurance rise annually, due to the increasing cost of medical care, but my experience is that in most cases this is by around 10%, not the higher figure claimed. I prefer to use International medical insurance providers who are financially secure and have a history of providing these types of plans as well as being efficient at dealing with claims.
The question now is what does Green Crescent’s announcement mean for their policyholders and other local providers?
Green Crescent is a provider of group medical insurance policies for a minimum of tem members and also offers group life and disability cover. Any company that has arranged cover will need to be aware that their cover may not be renewed at the next anniversary date and may want to start looking at alternatives. Even if the company continues trading, this must have shaken confidence and is a reason to look at alternative providers.
Whilst I do not have any figures, it seem likely that there are other local providers who may have difficulties, and when it comes to insurance companies, there are times when bigger really is better.
There are many insurance companies offering group medical cover in the UAE, but they each have a range of plans, many of which can be tailored to suit the needs of the client. For an HR Manager to find the best plan themselves is almost impossible as well as incredibly time consuming. Far better to use an experienced broker who deals with the providers on a daily basis and can source a plan to suit your requirements and budget.
It can take time to obtain personalised group quotes, whether for a new scheme or to replace existing cover, so it is rarely too early to start exploring the alternatives. Medical cover is perhaps the benefit most valued by employees so it pays to offer a good plan at the right price.
To review your group plan, or look at arranging a new scheme, please contact me on keren@holbornassets.com
In case you missed any, here are links to all the On Your Side columns from the Personal Finance section of The National newspaper from September 2012. I don’t post all the column links here every month, but on 8th September my 200th column was published which felt like something of a milestone.
Over the past four years the column has answered hundreds of questions, solved masses of problems, obtained refunds and apologies and even kept people out of jail by intervening in debt issues. I am extremely proud of the work we have done and the good reputation we have built up, not only with our many readers, but also companies in the UAE.
01/09/12 http://tinyurl.com/OnYourSide010912
08/09/12 http://tinyurl.com/OnYourSide080912
15/9/12 http://tinyurl.com/OnYourSide150912
22/09/12 http://tinyurl.com/OnYourSide220912
29/09/12 http://tinyurl.com/OnYourSide290912
Contact me at keren@holbornassets.com
Here are the links to the podcasts of the last two guest slots on the Nightline show on Dubai Eye 103.8FM
On 24th April we talked about questions and answers in my On Your Side column in The National newspaper and then about how not to invest.
http://nightline.podomatic.com/entry/2011-05-24T23_57_08-07_00
On 27th June we again chatted about popular column queries and then touched upon what can go wrong when investing and how to avoid it, as well as planning financially for the summer break and your holidays.
The next new broadcast from the Nightline show will be in September, but there will be reruns in the Nightline slot (8-10pm Sunday to Wednesday) including several of my appearances. I will continue to appear on the Dubai Today programme on the same station on the first Monday of every month at 11.00am.
Here is the podcast of the radio show broadcast on 29th March 2011. Our topic was Money and Gender and we discussed whether the sexes have different attitudes towards money, if they handle it different and view risk and investing in different ways.
We also touched on the recent ruling from the European Court of Justice which announced that insurance companies are acting illegally by using gender to calculate insurance premiums as it is deemed sex discrimination.
http://dubainightline.blogspot.com/2011/03/keren-bobker-on-your-finances.html
As usual, a serious topic, but treated in a fun and light-hearted manner.
The next radio show will be on 19th April.
On 7th February I appeared in my usual guest slot on the Nightline show on Dubai Eye 103.8FM.
This month we talked about the most popular topics in the letters and emails I receive from readers of my newspaper column, as well as medical insurance in the UAE and what you need to know.
Use the link below to listen or download the podcast of the show (40 minutes)
http://nightline.podomatic.com/player/web/2011-02-08T01_09_25-08_00
It is a lighthearted show, but contains useful information and facts presented in an easy listening way.
Please contact me if you have any queries related to these topics or any other issues.
From an article I wrote in The National newspaper, published February 2010
In today’s money-orientated world, many parents consider it important to teach their children how to be financially aware and responsible.
Too many young adults get into financial difficulties, so the sooner children understand the basics the better. They are generally curious about money from an early age, so it’s a good idea to take advantage of this natural tendency.
The teaching can start when they are relatively young with the concept of earning and spending money. The basics of mummy and daddy working to earn money that pays for their home, food, toys and schooling can be explained as they simply need to understand the connection.
It’s a good idea to get them used to different coins and notes once they can read numbers, and it helps with mathematics, too. Children like to copy their parents, so encouraging them to understand prices and values should be relatively easy. Take them shopping with you and encourage them to compare prices for different brands of the same item. It’s an unusual child who doesn’t like sweets and most will soon become interested in working out which offers the best value for the Dirhams in their pocket.
It can become a game, especially when related to things they like. Gradually, what seems to be a game becomes an important lesson.
When using credit cards, parents should explain that these transactions represent real money, and they are not a magic way of spending without consequences.
Most parents give their children pocket money, but it is important that it be valued, rather than taken for granted; a reward, not an expectation. Even from around age four, pocket money can be paid as a reward for simple tasks, such as putting away toys or helping with housework.
Give your child their own money box and praise them for putting money aside to pay for treats. They can then save up to buy things that they want, with the theory being that the effort involved will endow the item bought with more value. Praise for their efforts is essential and this soon becomes a habit. As the child gets older it is normal for amounts of pocket money to increase, but so can the chores required.
Children do not generally take a long-term view on life, and actual investing – that is, into equity markets, stocks, bonds, shares and the like – is too difficult a concept to grasp, particularly the angle of risking capital.
What does make sense, however, is opening a bank account in the child’s name. Few banks in the UAE offer specific children’s accounts, and they may be missing a trick here. Others will allow accounts to be opened for the children of existing account holders, which means that it is nominally in their name, but requires the assistance of the parent for any transactions. Nevertheless, the child can monitor account balances and make transactions just like an adult.
Hopefully there will be more deposits than withdrawals, and these will develop into a good long-term habit.
http://www.thenational.ae/apps/pbcs.dll/article?AID=/20100206/PERSONALFINANCE/702059906/1338