“We are delighted to report strong returns for our customers for a second year in row. We are passionate about increasing savings across the UAE and we measure our success on the number of savers year on year. We incentivise customers to save with us through competitive returns and we are very pleased to report an increase in regular saving by 20 percent in 2017. This is reflective not only of the growing confidence in National Bonds, but also the growing appetite among UAE residents to invest in their future.
At National Bonds, we are committed to helping UAE residents save and as the latest results highlight, it pays to save with us. In fact, bondholders who have invested with us since inception have seen nearly 52 percent in total returns to date - a significant return on investment,” he added.
Looking at annual returns, including annual profits and donated rewards, holders of Saving Bonds valued at more than AED50,000 received on average return of 1.64%, while those with bonds valued at AED150,000 or more benefitted from an average return of 2.43%. Customers who had a balance of over AED350,000 in their accounts were rewarded with an average return of 3.62%. National Bonds’ Term Sukuk also reported strong results for customers last year, with returns ranging from 1.75% up to 4% for customers with a three-year term. Additionally, holders of Regular Saver Bonds saw an average annual return of 2.82%.
National Bonds also reported, in line with the overall growth of private wealth in the UAE, an increase to the numbers saving with their Prestige Programme. As private wealth continues in the UAE and wider region, 2017 saw an eight percent increase in the account balance of Prestige customers. Interestingly, there was a 23% increase in customers who joined Prestige last year, 5% of which were new to National Bonds.
“Last year was a great year for our business. Not only did we witness an increase in returns for a second consecutive year, but we also witnessed stable growth across our business. In 2017, we remained bullish in our investment strategy, but always with our stakeholders’ interest in mind. This, in turn, produced strong results which we look forward to continuing into 2018,” said Mohammed Qasim Al Ali.
National Bonds’ investment strategy remained robust in 2017, with a continued focus on capital preservation for customers and the long-term economic development of the UAE. Low-risk investments remained a key priority in 2017, with the aim of protecting the interests of bondholders and shareholders. This approach has ensured year-on-year increases in shareholder equity.
An example of successful investment by National Bonds can be seen through its retail arm, National Properties LLC. In 2017, National Bonds delivered the second Phase of Motor City Green Community. Also known as Casa Familia Villas, this project quickly became one of Dubai’s most sought-after residential addresses and was completed within the year, two months ahead of schedule.
Other areas of success in 2017 include National Bonds’ commitment to sustainability. Last year, National Bonds signed a deal with Dubai Electricity and Water Authority (DEWA) in Q4 2017 to set up an AED 2.5 billion green fund. The ground-breaking fund will be the first major green fund with a dedicated arm for Sharia-compliant investments. The Fund’s aim is to invest in multiple types of projects including renewable energy, retro retrofitting existing fossil fuel based energy systems, energy efficiency and balancing technologies between electricity demand and supply.
Speaking on the overall performance of National Bonds in 2017, Mohammed Qasim Al Ali concluded:
“Despite challenging market conditions, I am pleased to say that we recorded strong growth and were able to provide strong results for UAE savers, as well as National Bonds stakeholders. This is a clear testament to the company’s robust financial strategy, clear vison for the future, as well as the hard work and dedication of our people. We have a number of exciting launches and investment opportunities in the pipeline and I am personally excited for what 2018 has to offer.”
About National Bonds Corporation PJSC
National Bonds, licensed and regulated by the UAE Central Bank, is a Sharia'a compliant saving scheme that provides UAE nationals, UAE residents and non-residents with a credible and safe savings opportunity. Minors can also own National Bonds, provided the bonds are purchased by the parent/guardian. Each bond costs AED10, with a minimum purchase option of AED100. National Bonds Corporation PJSC announced an annual return up to 4% for 2017. The scheme has distributed an annualized rate of return of 52% since inception, which is a combined average of annual returns and prizes distributed till 2017. National Bonds is a unique savings scheme with a diversified client base, offering:
• Opportunity to win more than 40,000 prizes every month. These prizes include monthly and quarterly awards distributed to UAE nationals and residents in separate categories. The quarterly prize offers two participants the chance to win a million dirham award every first Sunday of the quarter. The monthly awards give two bondholders the chance to win AED10,000 to two women bondholders, and AED 10,000 to two minor bondholders. In addition, regular savers have the chance to win 15 awards worth AED10,000 every month. The monthly prizes also include give away cash awards valued at AED50 each. The awards are allocated to 4,000 women bondholders, 4,000 minor bondholders, 8,000 regular savers, and 24,000 awards for all individual bondholders.
• National Bonds can be purchased from nearly 1,700 outlets across the UAE, including The Sukuk Express through MBME - The Cube machines, Emirates Post offices, exchange houses and banks.
• National Bonds can also be purchased online at www.nationalbonds.ae
© Press Release 2018