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National Bonds boosts investments to Dh8.8b

Issac John /Dubai
issacjohn@khaleejtimes.com Filed on April 6, 2021
Mohammed Qasim Al Ali, Group CEO, said the company had helped more expats and Emiratis to adopt the regular savings habit, which means an increase in bondholders’ confidence.

The company’s number of regular savers rose by 21 per cent year-on-year basis in 2020; It maintains its leading position in terms of the returns it offered to its bondholders last year

National Bonds, the UAE Shariah-compliant savings and investment company, said on Tuesday that its investments surged by 13 per cent to Dh8.8 billion in 2020 from Dh 7.8 billion in 2019.

The company, owned by the Investment Corporation of Dubai, said it also maintained its leading position in terms of the returns it offered to its bondholders last year.

Those with holdings of Dh1 million or above earned a minimum return on investment (ROI) of 2.95 per cent, one of the highest in the region. Meanwhile, the current market EIBOR rate for one-year is 0.50 per cent.

The company said the success is largely due to the innovative programs and services the company is offering its bondholders.

Those with holdings ranging from Dh350,000 to Dh1,000,000 earned a minimum ROI of 2.45 per cent, while those in the Dh150,000 to Dh350,000 category earned a minimum ROI of 1.80 per cent. Those with Dh100,000 to Dh150,000 holding enjoyed a minimum ROI of 1.0 per cent, while accounts ranging from Dh50,000 to Dh100,000 received a minimum ROI of 0.85 per cent. in addition, bondholders also received an enhanced return on investment through National Bonds’ extensive reward program which distributed a staggering Dh35 million worth of rewards during 2020,

The company’s number of regular savers rose by 21 per cent year-on-year in 2020; while the digital sales made via its enhanced mobile application and website climbed by more than 217 per cent compared to the year before. Since its inception, the company has distributed 5.66 million prizes worth Dh658 million rewarded to both Expats and UAE nationals.

Khalifa Al Daboos, National Bonds’ chairman, said despite challenges, the company has achieved impressive growth, thanks to its solid foundation, and sound strategy to offer optimized returns on our investments.

“These results reinforce our confidence in the brand and its leadership role in the industry in the UAE and the region. This will also enhance our bondholders’ confidence in saving with National Bonds and encourage those who haven’t yet started this journey to do so quickly,” he said.

“National Bonds is committed to diversifying its investments and maintaining its prudent strategy, believing that it is capable of delivering the best returns to bondholders with minimum risk,” he added.

Al Daboos said worldwide restrictions have had a positive effect on saving behaviour.

“The rate of saving increased during this period,” he said. “During crises, especially those where the end is unforeseen, individuals cut their expenses and start building their emergency savings as a precautionary measure for themselves and their families”.

Mohammed Qasim Al Ali, Group CEO, said the company had helped more expats and Emiratis to adopt the regular savings habit, which means an increase in bondholders’ confidence.

"This confidence is due to the company’s strategies and pillars, in addition to the pioneering and innovative programs it launches, to suit the varying needs of different individuals, and the competitive returns it gives to savers, which are amongst the highest in the UAE market,” he added.

“All of these are distinctive achievements, but the one we are proudest of is the 217 per cent increase in the percentage of digital sales made through the enhanced mobile app,” he added.

— issacjohn@khaleejtimes.com

author

Issac John

Editorial Director of Khaleej Times, is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE's mainstream journalism for 35 years, including 23 years with Khaleej Times. A post-graduate in English and graduate in economics, he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends, he is respected for his astute understanding of the local business scene.





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