The saving rate is 1.6% of Saudi household income, compared to 36% in China
The founder and CEO of The Family Office, Abdul Mohsen Al-Omran, emphasized that Vision 2030 aims to raise the savings rate of Saudi families to 4 times the percentage currently registered.
Al-Omran added in an interview with “Al-Arabiya” that the culture of saving requires more mobilization of resources and awareness and cultural efforts to encourage people to do so.
He said that in developing markets, banks play a small role compared to investment companies specializing in saving aspects and various solutions.
He considered that banks have conflicts of interest in promoting the savings culture, stressing that they are more concerned with the outcome of clients ’current account.
He added that with the changing circumstances of the global economy, it is necessary to start educating investors, and foster a culture of exploiting investment opportunities in the assets available to individuals such as bonds, bonds and various debt instruments.
He stressed that the problem boils down to awareness and culture, as the investment and savings channels are multiple and present, and require more support for them, and the adoption by families of a savings or investment approach that ensures a reduction in the consumption share of their annual and monthly income.