Georgia's new parliament opens first session amid mass protests and boycott    Gangsters block aid distribution in south Gaza    Russian deserter reveals war secrets of guarding nuclear base    Judge dismisses special counsel's election case against Trump    Best-selling novelist Barbara Taylor Bradford dies    Lulu Saudi Arabia celebrates its 15th anniversary with the grand launch of 'Super Fest 2024'    Cristiano Ronaldo's double powers Al Nassr to 3-1 win over Al Gharafa in AFC Champions League    Franchise registrations in Saudi Arabia surge 866% over 3 years    Al Ahli edges Al Ain 2-1, bolsters perfect start in AFC Champions League Elite    Saud Abdulhamid makes history as first Saudi player in Serie A    Culture minister tours Saudi pavilion at Expo 2025 Osaka    Saudi Cabinet to hold special budget session on Tuesday    King Salman orders extension of Citizen's Account Program and additional support for a full year    Al-Falih: 1,238 foreign investors obtain premium residency in Saudi Arabia    Most decorated Australian Olympian McKeon retires    Adele doesn't know when she'll perform again after tearful Vegas goodbye    'Pregnant' for 15 months: Inside the 'miracle' pregnancy scam    Do cigarettes belong in a museum?    Riyadh Emir inaugurates International Conference on Conjoined Twins in Riyadh    Saudi Arabia to host 28th Annual World Investment Conference in Riyadh    Order vs. Morality: Lessons from New York's 1977 Blackout    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Financial literacy in Kingdom requires upgrading
Published in The Saudi Gazette on 21 - 10 - 2015

According to the latest survey by Souqalmal.com, the leading financial comparison website in Saudi Arabia, 61 percent of Saudi residents did not know the difference between reducing and flat rate, an important aspect to consider when selecting a loan.
Factoring in the type of rate you are being offered by the bank can determine the real cost of your loan. While a flat rate appears to be lower as it calculates the profit on the entire loan amount, the reducing rate calculates your repayments on the outstanding balance of your loan and not the entire amount.
Ambareen Musa, CEO of Souqalmal.com, said: "Education plays a vital role in helping consumers know their financial rights and obligations. As the first financial comparison site in Saudi Arabia, Souqalmal.com helps consumers compare financial products offered by banks in the Saudi Arabia. Financial education has been an integral part of our existence and allows us to raise the level of transparency and awareness to allow users to better understand their choices and commitments."
When it comes to understanding their credit history, the survey revealed that 52 percent of Saudi nationals admitted that they did not know about the credit report provided by SIMAH (Saudi Credit Bureau). When it comes to expatriates, this number rose to 72%. Understanding one's credit history is a key component of financial education as it allows Saudi residents to keep a close eye on their level of debt and their ability to take on anymore. SIMAH is one of the longest established credit bureau in the region and is used by banks for their credit decision. The regulations in Saudi Arabia sets the Debt Burden Ratio (DBR) for the consumer at 33%.
The Souqalmal.com survey revealed that only 22% of Saudi nationals would turn to their bank for financial advice as a first point of call. This percentage declined to 14 percent for expatriates - a clear sign that there is an opportunity for banks to become more of a trusted advisor and build stronger relationship with their customers. Family and friends took the first position in giving financial advice to Saudi residents (36 percent) followed by Internet search (24%).
Also contrary to the common perception that cash is the most popular choice of payment in Saudi Arabia, of our survey sample approximately 60 percent of Saudi nationals have credit cards in their wallet - an encouraging number for SAMA who has been doing a lot of effort to promote plastic and electronic payment and reduce cash. Credit cards were mostly used to shop online (31 percent) followed by paying for daily expenses (25 percent) and when travelling outside Saudi Arabia (23 percent). This is an indication that cashless payment is gaining traction compared to previous years and is being increasingly accepted by consumers. For those who did not have credit cards, the main barrier was concerns around security hence the importance of setting financial literacy guidelines to help Saudi residents understand their finance options.
Musa, added: "Saudi Arabia has been one of the strongest economies not only in the MENA region but also globally with a young, highly connected and growing population. The opportunity for us to bring more transparency in the banking sector through our financial education portal is very exciting."


Clic here to read the story from its source.