Focus will be on low and middle classes
National Bonds, which collected more than Dh1.7 billion in 21 months of its inception, is planning to venture into areas such as credit cards and a chain of medium-sized GP clinics, among other initiatives, according to its chief executive.
Talking to The Business Weekly recently, Mohammed Qasim Al Ali, chief executive officer, said NBC will explore areas of businesses with a focus on supporting the low and middle classes in society.
He said since NBC is dealing with the Sharjah Islamic Bank and Emirates Islamic Bank (EIB), it would think of launching credit cards in partnership with these banks.
Highest profit rates
"Making money is not the sole focus of National Bonds, which has already given away Dh86 million in prizes alone, apart from one of the highest profit rates in the country to its bond holders," said Al Ali.
Al Ali's business acumen has been on display time and again with him exploring possibilities of setting up similar ventures in countries like Indonesia and Qatar and putting together ways to encourage corporates to participate in the bonds.
He is clearly focused on innovative ventures in residences and education to support the low and middle classes in the country. National Bonds and the Skycourts' concept of providing elegant yet affordable housing in the UAE is indeed a step towards achieving these targets.
NBC has plans to make these bonds available electronically. Al Ali believes that initiatives like involving corporates in bond subscription and easing access to bonds through electronic platforms could boost subscription in a big way. NBC makes sharia'a-compliant investments in order to make use of its liquidity in the best way possible.
"We are looking for new investments and business avenues along with initiatives aimed at the needy in society," he added.
The fact that NBC has been able to distribute higher profit rates than many Islamic banks in the country at 6.03 per cent on an annualised basis has attracted many new investors into the scheme.
Savings culture
"Many still do not know that prizes are given away from the promoters' funds and not through risking the bondholders' returns," Al Ali added.
National Bonds seeks to promote a savings culture among people by encouraging them to save and by investing the bond holders' savings in rewarding development initiatives.
National Bonds has initiated and promoted various investment opportunities offered exclusively to its bondholders through its real estate arm, National Properties.
Stating that the decision on whether to list these bonds or not on stock market is vested with the promoters of the company, Al Ali said as a rule of thumb, the company will be required to publish three years' financials before it could think of such a move. The first financials of the company are already out.
By Amit Chettupuzha
© The Business Weekly 2008
