Abu Dhabi Islamic Bank (ADIB), the second-largest Sharia-compliant lender in the Emirates, has launched a financial literacy campaign as part of a long-term strategy to educate customers on the basics of money management, planning and making responsible financial decisions.
The bank kicked off its campaign this week with the release of Smartmoney, an easy-to-understand financial booklet that covers how to budget, manage debt and investments, understand risks and help to create personal wealth.
Tirad Mahmoud, the chief executive of ADIB, says educating the community about living within their means and guiding them on ways to protect themselves is in line with the Government's plan to develop financial literacy in the country.
"The Government in general, with all its various interests, has been calling on the financial institutions to promote the higher learning of financial management, especially at the consumer level," Mr Mahmoud says.
"I think education is very important. We have put our best resources to use to share our knowledge with the public.
"I believe that our commitment and role in society is not just to provide services but also to provide education."
Mr Mahmoud says the bank's analysis of consumer spending and saving patterns before and after the global financial crisis made it "realise that most individuals do not place due emphasis on long-term financial planning and prudence".
"The recent economic crisis has highlighted how essential it is that individuals and families have the information, education and tools that they need to make wise financial decisions," he says.
Just 25 per cent of UAE residents save money on a regular basis and 23 per cent of Emiratis do not save at all, according to research by National Bonds, the Sharia-compliant investment scheme that was last month taken over by Investment Corporation of Dubai.
MasterCard Worldwide last month released its Global Index of Financial Literacy, which found that within the Mena region, Egyptian women budgeted and kept up with their bills and credit commitments. Overall, Egyptian women scored the highest in the MasterCard index, while women from the UAE came in last.
"The Smartmoney booklet is just the beginning," says Mr Mahmoud. "We will unveil financial education for all customer segments, be they children, SMEs, ladies or affluent customers.
"We are confident our customers and community will find it a useful instrument that will help them live a balanced financial life."
The Smartmoney booklets, in either Arabic or English, are available for free in all ADIB branches.
For more information, go to www.adib.ae.
