long savings campaign launched here this week is advising people in shopping malls on ways to save on their fixed monthly income. Saudi and non-Saudi men, women and children visiting shopping malls are the targets of the campaign. The basic aim of the campaign, launched initially at malls in Riyadh and Al-Khobar to be expanded later to the Western Province, is to create a savings culture in Saudi Arabia. Mohammed Al-Modhayan, Public Relations Manager of a Saudi company certified by Capital Market Authority (CMA), said that according to a recent MasterCard survey, economic uncertainty has caused 62 percent of consumers in Saudi Arabia to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 46-55 age bracket are most concerned about saving for a rainy day, Al-Modhayan said quoting the survey. As part of its corporate social responsibility (CSR), the company wants to create a savings culture and bring prosperity to people's lives, he said. Al-Modhayan said the savings culture would encourage people to buy what they want, “but not through the use of credit cards or on the basis of monthly installments”. He said banks are partly to blame for the increasing number of people who are in debt. Instead of encouraging people to “save from their monthly income”, banks encourage buying on credit, ultimately leading to over-purchasing and debts. Banks should educate people by explaining to them that a sustained savings culture can promote wealth creation and economic growth, he said. Al-Modhayan said that besides listings 85 mutual funds from nine banks in the Kingdom as investment alternatives for small-time investors, the company has set up booths at various malls in Riyadh and the Eastern Province offering free consultancy and advice on investment opportunities. “Our aim is to create a savings culture in the country and we will do this by targeting shoppers visiting various shopping malls in the Kingdom,” he said. He said consultants and financial advisers would brief people on issues such as financial planning and discuss with them the significance of saving and investing for the future. Moreover, upon request, a free “Guide on Savings”, will be given to those who are interested in saving and investing in Shariah-compliant mutual funds, he said. The company's website invites investors to browse and compare products offered by various banks in the Kingdom, he said. Recent statistics indicate that people are unnecessarily getting into debt by spending on travel, tourism and shopping, he added. Such debt would not pose a problem if there were sufficient savings. People have to think about savings which can support them in difficult times, he said.
