UAE's National Bonds see 75% jump in regular savers in 2016

These numbers demonstrate the success of the company’s capital preservation strategy

  
Image used for illustrative purpose. Close-up of dirham coins on UAE notes.

Image used for illustrative purpose. Close-up of dirham coins on UAE notes.

Wednesday, Apr 12, 2017

DUBAI

National Bonds said on Wednesday it saw a 75 per cent jump in regular savers in 2016, reflecting growing confidence in their Sharia-compliant savings and investment schemes.

These numbers demonstrate the success of the company’s capital preservation strategy, its focus on responsible investments in real and sustainable economic sectors, and investment portfolio diversification while retaining focus on the growth of the local economy through the contribution of its Mudaraba portfolio, National Bonds said in an emailed statement.

“Our investments, the majority of which are within the UAE, ensure a sound and sustainable contribution to the local economy, society and the environment,” Mohammad Qasim Al Ali, Chief Executive Officer of National Bonds, said in a statement.

He noted that 2016 brought a multitude of challenges due to declining oil prices and market volatility that raised investor concerns and impacted their financial decisions. However, thanks to the low-risk, capital preservation investment strategy adopted by the company, the year also saw solid growth and impressive financial results that reinforce the company’s steady progress over the past few years.

Holders of Saving Bonds worth more than 50,000 received on average 1.76 per cent return, while those with bonds valued at Dh150,000 or more achieved on average 2.43 per cent. Meanwhile, customers who had a balance of over Dh350,000 in their accounts enjoyed on average 3.37 per cent.

National Bonds’ investments in the UAE constitute 92 per cent of the overall investment portfolio, with 5 per cent placed within the other GCC countries and the remaining three per cent spread elsewhere. Given the high liquidity offered by the company’s scheme, money market and fixed income instruments constitute 63 per cent of its investment portfolio, while the remaining comprises revenue generating real estate, real estate development, and listed and private equities.

Staff Report

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