Financial literacy in the United Arab Emirates
The British University in Dubai (BUiD)
This research examined financial literacy in the UAE. Financial illiteracy was known to be the main reason behind financial problems in many countries around the world. The research examined whether financial literacy has led to financial problems in Abu Dhabi and Al Ain, or not. This study surveyed 369 households in Abu Dhabi and Al Ain and determined their financial literacy level through short exam. The survey tested households’ demographic information, general financial behavior, saving behavior, debt behavior, and actual financial literacy scores. The findings suggest that 75% of households were classified in the low category of financial literacy scores based on the financial literacy exam. Relationships between financial literacy, saving behavior, and debt behavior were tested using CHI Square test of independence. Results showed that there is no relationship between financial literacy level and saving behavior, but there is a significant relationship between saving education and saving behavior. Moreover, no relationship was found between financial literacy level and debt behavior, yet a strong evidence of relationship was found between debt education and debt behavior. It was concluded that financial education on saving and debt have a great impact on Abu Dhabi and Al Ain households’ financial behavior.
DISSERTATION WITH DISTINCTION
financial illiteracy, United Arab Emirates (UAE), financial behavior