Customers in the UAE have become more financially savvy over time, according to the results of MasterCard’s latest Index of Financial Literacy.

UAE customers increased their overall financial literacy ranking in the Middle East from 6th place in 2010 to 3rd place this year, the study showed.

In addition, UAE consumers were the most informed in the Middle East when it came to knowledge about investments, it showed.

The MasterCard Worldwide Index of Financial Literacy is based on a survey conducted from April 24 and June 10 with 11,376 respondents aged 18 to 64 in 25 countries. This is the 3rd survey of Financial Literacy conducted since 2010.

The survey polled customers on three aspects of financial literacy including their basic money management skills, investment knowledge and financial planning to determine the level of basic money management skills in terms of budgeting, savings, and responsibility of credit usage. The survey and its accompanying reports do not represent MasterCard’s financial performance, a statement from MasterCard said.

UAE customers ranked 3rd in the Middle East with a score of 61 index points in the study. Consumers in the Emirates scored well on the Index’s financial planning component (65 per cent), and were particularly well prepared when it came to saving regularly and early financial planning, the statement said.

The financial planning scores were followed by basic money management (60 per cent) and investment (57 per cent). The UAE consumers’ score for investment know-how was the highest in the Middle East, and their score for financial planning (65 per cent) was higher than the Middle East average (64 per cent).

In the investment component of the survey, consumers in the UAE showed good understanding of their financial statements and the suitability of financial products for their needs.

“It is encouraging to see that consumers in the UAE are becoming more financially aware and hence able to make responsible financial decisions for themselves and their families,” said Eyad Al-Kourdi, vice president and country manager, UAE, MasterCard Worldwide.

“Financial literacy is a key focus area for MasterCard, and we will continue to champion the cause with initiatives like the  It’s My Business programme that we have launched with Injaz Al-Arab to train Arab youth in work readiness, financial literacy and entrepreneurship,” he concluded. – TradeArabia News Service